Won-Dollar Exchange Rate Closes at New Year High... Impact of Novel Coronavirus Fear

[Asia Economy Reporter Kim Eun-byeol] On the 28th, the won-dollar exchange rate closed at its highest level of the new year due to the impact of the "Novel Coronavirus Infection (Wuhan Pneumonia)." The fear of the novel coronavirus caused a flight to safe-haven assets, resulting in a relatively weak Korean won.

On that day, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,176.7 won, up 8.0 won from the previous trading day. After opening at 1,178.5 won, up 9.8 won, it took a breather and then reduced the rise.

The won-dollar exchange rate had fallen to the 1,150 won level on the 14th as military tensions between the U.S. and Iran, which had escalated at the beginning of the year, eased. However, after hitting 1,167.0 won on the 21st closing price, it showed an upward trend and broke through the 1,170 won level on this day. As anxiety in the financial market increased, the U.S. dollar, classified as a safe-haven asset, strengthened, causing the value of the won against the dollar to continuously decline.