Won-Dollar Exchange Rate Plummets Nearly 15 Won to Close at 1082.1 Won... Global Risk Appetite Continues (Comprehensive)

Risk Asset Preference Threatens 1080 Level
KOSPI Hits All-Time High

The KOSPI surpassed the 2,700 mark for the first time in history. On the 4th, the KOSPI opened at 2,705.34, up 9.12 points (0.34%) from the previous session, showing a strong upward trend. On the same day, the won-dollar exchange rate started at 1,092.5 won, down 4.5 won from the previous trading day. The photo shows the Hana Bank dealing room in Jung-gu, Seoul, on the morning of the day. Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Jang Sehee] The won-dollar exchange rate barely held at 1,080 won as it closed. As the global risk appetite continued, the won-dollar exchange rate further widened its decline.

On the 4th at the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,082.1 won per dollar, down 14.9 won from the previous day's closing price, continuing a four-day consecutive decline. This is the lowest level in two and a half years since it recorded 1,083.10 won on June 14, 2018.

On that day, the exchange rate opened at 1,092.5 won, down 4.5 won, and continued a sharp downward trend, breaking below the 1,090 level in the morning.

The won-dollar exchange rate fell as global risk appetite and dollar weakness continued due to expectations that the U.S. fiscal stimulus package in response to the novel coronavirus disease (COVID-19) would be finalized within the year, while the euro and yuan showed strength.

On the 3rd (local time), U.S. House Speaker Nancy Pelosi (Democrat) and Senate Minority Leader Mitch McConnell (Republican) had their first phone call since the presidential election and exchanged views on the stimulus package, raising expectations for the passage of a new COVID-19 relief bill within the year.

The dollar index, which reflects the value of the dollar against six major currencies, fell to around 90.6, hitting a two-and-a-half-year low for the third consecutive day. Offshore selling, which had led the exchange rate decline the previous day, also continued, driving the exchange rate down.

On the other hand, the KOSPI index reached a record high, surpassing the 2,730 level during the session, supported by foreign buying. The KOSPI index closed at 2,731.45, up 35.23 points (1.31%) from the previous day. Although the upward momentum of the KOSPI index may slow down, there are forecasts that further gains are still possible.