Customs-Driven Volatile Market... Won-Dollar Exchange Rate at 1420 Won, Lowest in Four Months (Update)

On the 14th, the won-dollar exchange rate plummeted to the 1420 won level due to the global dollar weakness.

At the Seoul foreign exchange market on that day, the won-dollar exchange rate was trading at 1424.0 won as of 9:10 a.m., down 25.8 won from the previous trading day's weekly closing price (based on 3:30 p.m.). The exchange rate opened at 1428.0 won, down 21.9 won from the previous trading day. Based on the opening price, this is the lowest level in over four months since December 9 last year (1426.0 won). The won-dollar exchange rate rose to the early 1430 won level in the early session but has been moving around the mid-1420 won level.

The weak dollar trend has strengthened due to the aftereffects of U.S. President Donald Trump's tariff policies. The dollar index, which represents the value of the dollar against the currencies of six major countries, plunged to 99.00 on the 11th before slightly rebounding, but it still remains below 100 at 99.81. Overnight, President Trump reaffirmed his stance to impose reciprocal tariffs on semiconductors and other electronic products.

Experts expect exchange rate volatility to continue for the time being due to the impact of the tariff war. Kwon Amin, a researcher at NH Investment & Securities, said, "Although I had forecast the annual lower bound of the dollar index at around 97 this year, the intensification of the tariff war and the rapidly deteriorating U.S. growth outlook suggest that the lower bound is likely to fall further."