On the morning of the 26th, the exchange rates for won and dollar are displayed on the electronic board in the dealing room of Hana Bank in Jung-gu, Seoul. [Image source=Yonhap News]
On the 26th, the KRW-USD exchange rate surpassed 1,420 won for the first time in about 13 years and 6 months.
According to the Seoul foreign exchange market, the KRW-USD exchange rate was trading at 1,423.1 won as of 9:25 a.m.
After starting the day at 1,419.0 won, up 9.7 won from the previous trading day, it quickly exceeded 1,420 won, raising the upper limit.
The KRW-USD exchange rate surpassing 1,420 won intraday is the first time since March 31, 2009 (high of 1,422.0 won) during the financial crisis, about 13 years and 6 months ago.
The dollar's strength is intensifying due to the U.S. Federal Reserve's (Fed) aggressive tightening stance, spreading recession concerns, and the prolonged Russia-Ukraine war.
In particular, the British government’s announcement of the largest tax cut plan in 50 years has caused the pound sterling to sharply decline against the dollar, further fueling the dollar’s strength.
The Dollar Index (DXY), which measures the dollar’s value against the currencies of six major countries, surpassed the 112 level for the first time in 20 years, while the New York stock market and international oil prices also plunged.
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