Dollar Weakness Continues... Won-Dollar Exchange Rate Closes 3.8 Won Lower on 29th

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] On the 29th, the won-dollar exchange rate closed lower in the Seoul foreign exchange market.

On that day, the won-to-dollar exchange rate in the Seoul foreign exchange market closed at 1,193.1 won per dollar, down 3.8 won from the previous day. The exchange rate opened at 1,197.1 won per dollar, up 0.2 won from the previous day, but turned to a downward trend in the morning.

Although the White House and the Republican Party announced a $1 trillion (approximately 1,198 trillion won) stimulus package on the 27th, concerns remain that the final bill may not be passed in Congress due to conflicts between the ruling and opposition parties, which has contributed to the continued weakness of the dollar.

Major U.S. companies such as McDonald's and 3M reported earnings below expectations, causing the New York stock market to close lower overnight. Due to concerns that the U.S. economic instability will last longer than expected, the dollar has recently shown weakness. The dollar index, which indicates the value of the dollar against the six major currencies, remains at the 93-point level, marking the lowest level since July 2018.