Won-Dollar Exchange Rate Fluctuates in the High 1310s... Stable Trend

The won-dollar exchange rate showed fluctuations in the late 1310 won range in the early trading session on the 7th.

According to the Seoul foreign exchange market, as of 10 a.m. on the day, the won-dollar exchange rate was 1318.9 won, down 0.2 won from the previous day's closing price.

The exchange rate, which started at 1317.9 won, down 1.2 won from the previous day's closing price, has been fluctuating in the late 1310 won range in the early session, showing a sideways trend.

Although global risk aversion has somewhat eased, South Korea's current account deficit in February, marking a deficit for two consecutive months, is acting as an upward factor for the exchange rate.

According to the Bank of Korea, the current account deficit in February this year was 520 million dollars, a decrease of 6.38 billion dollars compared to the same month last year.

Although the deficit narrowed compared to January, which recorded the largest deficit ever, the deficit has continued for two months.

Oh Chang-seop, a researcher at Hyundai Motor Securities, said, "Recently, the US dollar has shown weakness and global risk aversion has eased, leading to net foreign purchases in the domestic stock market." He added, "In this trend, the won-dollar exchange rate is attempting to enter the 1200 won range, but it is still insufficient." Oh said, "It seems that the current account deficit continuing for two consecutive months and the sharp decline in Samsung Electronics' operating profit in the first quarter of this year are reflected. Since the attractiveness of the won is relatively not highlighted, the downward trend of the exchange rate is slower than expected," he added.

[Image source=Yonhap News]

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