Exchange Rate Surges Over 20 Won to Close at 1435.2 Won... Largest Increase in 2 Years and 7 Months

On the 11th, dealers were working in the dealing room of Hana Bank in Euljiro, Seoul. On that day, the KOSPI index started at 2193.02, down 39.82 points (1.78%) from the previous trading day. The won-dollar exchange rate opened at 1428.0, up 15.6 won. Photo by Moon Honam munonam@

[Asia Economy Reporter Seo So-jeong] The won-dollar exchange rate surged by more than 20 won in a single day, reaching the high 1430 won range.

According to the Seoul foreign exchange market on the 11th, the won-dollar exchange rate closed at 1,435.2 won, up 22.8 won from the previous day. This is the largest increase since March 19, 2020 (40 won rise).

On that day, the exchange rate opened at 1,428.0 won, 15.6 won higher than the previous trading day's closing price, and then rose to 1,438.1 won in the afternoon as risk aversion sentiment increased.

Geopolitical risks surrounding Russia and Ukraine heightened risk aversion sentiment, while solid employment data led to a hawkish stance by the U.S. Federal Reserve (Fed), and expanding financial instability originating from the UK further strengthened the dollar.

Seunghyuk Kim, a researcher at NH Futures, said, "According to the U.S. Department of Labor, the unemployment rate in September fell to 3.5% from 3.7% in the previous month, returning to the July level," adding, "With strong U.S. employment indicators, expectations that the Fed will continue high-intensity tightening restored the dollar's strength."

Researcher Kim added, "The poor performance of AMD and the U.S.-China semiconductor dispute caused the Philadelphia Semiconductor Index to plunge, which was also a factor for foreign investors' withdrawal from the domestic stock market, putting upward pressure on the exchange rate," and "Combined with the weakening of the yuan, these factors contributed to the depreciation of the won."

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