Won-Dollar Exchange Rate in Early 1320 Won Range... Drops Nearly 20 Won

The won-dollar exchange rate plummeted by nearly 20 won.

According to the Seoul foreign exchange market on the 24th, the won-dollar exchange rate closed at 1,322.6 won, down 17.1 won from the previous day.

The exchange rate opened at 1,329.0 won, down 10.7 won from the previous day, then widened its decline and even fell to 1,319.6 won during the session.

This is interpreted as a result of some recovery in risk appetite due to weak U.S. economic indicators and growing expectations that U.S. interest rate hikes will end.

Oh Chang-seop, a researcher at Hyundai Motor Securities, said, "The dollar weakened overnight, which influenced the decline in the exchange rate," adding, "From the supply and demand perspective, foreign investors' continued buying of domestic stocks also pulled the exchange rate down."

Meanwhile, the Bank of Korea's Monetary Policy Committee kept the base interest rate unchanged at 3.50% in its monetary policy direction meeting that day. Governor Lee Chang-yong explained concerns about volatility in the won-dollar exchange rate, saying, "The current situation is not something to worry about," and "The recent rise in the exchange rate is because the dollar has strengthened while the yuan and yen have weakened."

He continued, "More important than the interest rate gap between Korea and the U.S. is whether the Federal Reserve will continue its tightening stance. If the Fed announces a final rate much higher than market expectations, the market could experience significant fluctuations," adding, "If such a possibility arises, we need to reduce that volatility not only through interest rates but also through various micro-level market interventions."

[Image source=Yonhap News]

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