Won-Dollar Exchange Rate Surpasses 1,470 Won... Highest in 15 Years and 9 Months (Update)

On the 27th, the domestic stock market started with a slight decline, and the won-dollar exchange rate surpassed 1,470 won for the first time since the 2009 financial crisis. Indices are displayed on the electronic board in the dealing room at the Hana Bank headquarters in Euljiro, Seoul. Photo by Heo Young-han

The won-dollar exchange rate started trading at 1,467.5 won on the 27th, up 2.7 won from the previous day, and surpassed 1,470 won during the morning session. This is the first time in 15 years and 9 months since March 2009, during the height of the financial crisis.

At 9:25 a.m. in the Seoul foreign exchange market, the won-dollar exchange rate was trading at 1,472.6 won, up 7.8 won from the previous day's weekly closing price (as of 3:30 p.m.). Despite the authorities intervening in the foreign exchange market, it appears difficult to defend the exchange rate.

Recently, the U.S. Federal Reserve (Fed) has shown a hawkish stance by reducing the expected number of interest rate cuts next year from four to two at the year-end meeting, sustaining the dollar's strength. Additionally, political uncertainty ahead of the impeachment vote on Prime Minister Han Deok-su, Acting President, also contributed to the rise in the exchange rate.