Risk Asset Concentration... Won-Dollar Exchange Rate Decline (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] As political uncertainty in the United States has somewhat eased and a risk asset rally has emerged, the KRW-USD exchange rate is also showing a downward trend.

As of 10:36 AM on the 25th, the KRW-USD exchange rate is trading at 1,106.68 won in the Seoul foreign exchange market. The exchange rate started at 1,108.8 won, down 3.9 won from the previous day's closing price, and has continued to decline.

With the official start of the transition process for President-elect Joe Biden and the announcement that the COVID-19 vaccine's preventive effect is up to 90%, positive factors have emerged one after another, leading to a risk asset rally. Overnight on the New York Stock Exchange, the Dow Jones Industrial Average surpassed 30,000 points for the first time in history. On the same day, the KOSPI index also started at the 2,630 level, hitting an intraday high.