The Won-Dollar Exchange Rate Surges to 1302.8 Won... Highest in About 13 Years (Comprehensive)

The won-dollar exchange rate surpassed 1,300 won during trading. On the 23rd, the exchange rate started at 1,299 won, 1.7 won higher than the previous day, and soared to 1,300.5 won by 9:15 a.m. It is the first time in about 13 years since July 14, 2009 (1,303 won) that the intraday exchange rate exceeded 1,300 won. The photo shows the Hana Bank dealing room in Jung-gu, Seoul on that day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Seo So-jung] The won-dollar exchange rate surpassed 1,300 won on the morning of the 23rd. It is the first time in about 13 years since the global financial crisis that the exchange rate has reached the 1,300 won level.

On that day, the won-dollar exchange rate started at 1,299.0 won in the Seoul foreign exchange market and rose to 1,300.50 won within about 10 minutes after the market opened, increasing its upward momentum before soaring to 1,302.8 won around 9:30 a.m. It is the first time in 12 years and 11 months since July 14, 2009 (high of 1,303.0 won) that the won-dollar exchange rate reached 1,300 won during trading hours.

Overnight, U.S. Federal Reserve Chairman Jerome Powell hinted at a strong response to inflation and acknowledged the possibility of a recession during a Senate hearing, strengthening the preference for the safe-haven dollar.

Chairman Powell stated, "The Fed policy rate is still at a low level, and it would be appropriate to raise rates above the neutral rate level," adding, "Achieving a soft landing for the economy is a very difficult task."

Experts predict that the upward trend in the exchange rate will continue for the time being, as there are no downward factors for the exchange rate and supply-demand factors are worsening, including the continued outflow of foreign funds from the domestic stock market.

Moon Hong-chul, a researcher at DB Financial Investment, said, "Overnight, confirming Chairman Powell's determination to control inflation, the market's risk-averse sentiment has increased," adding, "Concerns about economic slowdown and the acceleration of tightening by major central banks continue, so the exchange rate will need to keep the upper range open for the time being."