Trump's Likely Victory... Exchange Rate Breaks 2-Year High (Comprehensive)

Won-Dollar Exchange Rate Closes at 1,396.2 Won, Highest in 2 Years
Dollar Strengthens Amid Trump Election Prospects

[Image source=AP Yonhap News]

As the likelihood of Donald Trump winning the U.S. presidential election increased, the won-dollar exchange rate soared to its highest level in two years.

On the 6th, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,396.2 won at 3:30 p.m., up 17.6 won from the previous trading day. This is the highest closing price in about two years since November 7, 2022.

On that day, the won-dollar exchange rate opened at 1,374.0 won, down 4.6 won from the previous trading day, but surged during the session as news of Trump’s lead emerged.

From the early stages of vote counting, Trump was ahead of his opponent, Vice President Kamala Harris, and is reported to have secured more than 270 electoral votes, the majority needed to win.

Some U.S. media outlets, including Fox News, have issued breaking news indicating that Trump’s victory is certain.

If former President Trump is elected, concerns arise that U.S. protectionism, such as tariff increases, will intensify, which is considered a factor strengthening the dollar.

Former President Trump stated that if elected in this election, he would impose a 60% tariff on Chinese products as well as a general tariff of 10-20% on all imports.

Most of Trump’s major pledges, including protectionism, tariff hikes, expansion of fiscal deficits due to tax cuts, and containment of China, are considered factors that strengthen the dollar.

Not only the won-dollar exchange rate but also Bitcoin surpassed its all-time high of $74,000 on the same day, intensifying the Trump trade phenomenon. Former President Trump has shown a positive perception of virtual assets such as Bitcoin.