Won-Dollar Exchange Rate in the 1100 Won Range... Dollar Strengthens Despite US Biden Stimulus (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] As the dollar shows strength again, the won-dollar exchange rate started rising into the 1100 won range.

On the 18th, in the Seoul foreign exchange market, the won-dollar exchange rate opened at 1105.5 won, up 6.1 won from the previous trading day (1099.4 won). As of 10:48 AM, it is fluctuating in the low to mid 1100 won range.

Last week, the won-dollar exchange rate briefly rose into the 1100 won range during trading hours and closed higher near the upper 1099 won range, just shy of 1100 won.

On the 14th (local time), although U.S. President-elect Joe Biden announced a large-scale economic stimulus package causing the dollar to weaken again, the dollar has continued to strengthen as major U.S. economic indicators showed weak performance, increasing economic uncertainty. The U.S. Department of Commerce announced that December retail sales decreased by 0.7% compared to the previous month, a much larger decline than the 0.1% decrease forecasted by the Wall Street Journal (WSJ).

Reports that Janet Yellen, the nominee for U.S. Treasury Secretary, will state at her confirmation hearing scheduled for the 19th that she does not intend to pursue an artificially weak dollar also contributed to the rise in the dollar's value. Additionally, concerns about the safety of COVID-19 vaccines are also being reflected in a flight-to-safety sentiment.