Won-dollar exchange rate exceeds 1,460 mark for first time in nearly 16 years

환율, 금융위기 이후 첫 1,460원대… 앞으로 전망은?

The won-dollar exchange rate exceeded the 1-thousand-4-hundred-60 mark for the first time in nearly 16 years.
That's attributed to the strong dollar, along with the ongoing political turmoil in the country.
Our Park Kun-woo has more.

A 15-year-low for the Korean won against the greenback.
On Thursday, the won-dollar exchange rate closed its daytime trading at 1-thousand-4-hundred-64-point-8, its weakest level since March 2009 following the financial crisis.
The exchange rate was even at 1-thousand-4-hundred-66 at one point during the day.
Pundits point to the recently strengthening dollar, especially after the Federal Open Market Committee revised its forecast for interest rate cuts next year, reducing the number of cuts from four to two.
Concerns over potential policies under the approaching second Trump administration, including high tariffs and tax cuts that could lead to higher inflation, are also contributing to the dollar's strength.
Political instability in South Korea is making matters worse as Acting President Han Duck-soo also faces an impeachment motion.
That's compared to expectations that the weakening won will stabilize after President Yoon's impeachment motion was approved.
However, concerns are rising that the exchange rate could increase even further.

"There's a very good possibility that the won will hit 15-hundred before it goes back down. Foreigners are still leaving Korea's stock and securities markets so that is pushing the won down. The first thing Korea has to do is to get the leadership together and offer a clear path to the presidential impeachment and beyond."

Professor Yang predicts that the won will remain weak at least until the first quarter of next year due to weak economic fundamentals even without considering the political risk.
However, he added we will need to wait and see how the situation unfolds until Trump shows his actual plans for policies including those related to tariffs.
On Thursday, the benchmark KOSPI ended at 2-thousand-4-hundred-29, down by over 10 points compared to the previous session, while the tech-heavy KOSDAQ closed at 6-hundred-75, down by more than four points.

Park Kun-woo, Arirang News.

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2024-12-26, 20:00 (KST)