[Asia Economy Reporter Eunbyeol Kim] As Joe Biden, the Democratic candidate for the U.S. presidential election, is reported to have won, the value of the Korean won has risen to its highest level in 22 months. This is due to expectations that Biden will lead massive economic stimulus measures, which in turn will weaken the dollar.
On the 9th, in the Seoul foreign exchange market, the won-dollar exchange rate fell to its lowest level in 1 year and 10 months. It closed at 1,113.9 won, down 6.5 won from the previous trading day's closing price, setting a new yearly low based on the closing price.
This is also the lowest level since January 31 of last year (1,112.7 won).
With Biden's victory as the Democratic candidate, risk asset preference, including emerging market currencies, has strengthened. Unlike during the Donald Trump administration, there are also expectations that the Biden administration will ease U.S.-China trade tensions.
However, the resurgence of COVID-19 in major countries in the U.S. and Europe, as well as concerns about government intervention, are cited as factors preventing further declines in the exchange rate.
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