Won-Dollar Exchange Rate Hits New High Again... Approaching 1350 Won

On the morning of the 29th, the USD/KRW exchange rate is displayed on the status board in the dealing room of the Hana Bank headquarters in Euljiro, Jung-gu, Seoul. [Image source=Yonhap News]

On the 29th, the KRW-USD exchange rate rose to the 1349 won level during the session, breaking through the yearly high once again.

On that day, in the Seoul foreign exchange market, the KRW-USD exchange rate rose to 1349.1 won in the morning, surpassing the intraday yearly high of 1346.6 won recorded on the 23rd after four trading days, pushing the upper range higher.

The sharp rise in the KRW-USD exchange rate is interpreted as a result of Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), delivering hawkish (monetary tightening-preferred) remarks at the economic policy symposium held in Jackson Hole, Wyoming, on the 27th (local time).

Chairman Powell said, "Another unusually large rate hike may be appropriate," adding, "This is not a point to stop or take a breather."

Accordingly, the Dollar Index rose to around 109.30 at 9:30 p.m. on the 28th (local time), marking the highest level in 20 years and 2 months since June 19, 2002 (closing price 109.63).

Concerns over economic slowdown in Europe and China are also factors fueling the strong dollar. The USD-CNY exchange rate surged to 6.92 yuan, reaching the highest level of the year.

Bang Gi-seon, First Vice Minister of Strategy and Finance, held a market situation review meeting at the Korea Eximbank on the same day and said, "Our financial market has shown increased synchronization with major countries' financial markets such as the U.S.," adding, "We will strengthen policy efforts to stabilize the market in case of excessive market concentration."

This content was produced with the assistance of AI translation services.