"Weak Dollar Hits 4-Month Low" Won-Dollar Exchange Rate Closes at 1424.1 Won (Update)

Weekly Closing Price Ends at 1,424.1 Won on the 14th
Lowest Level Since December 6 Last Year (1,419.2 Won)

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

On the 14th, dealers were working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On that day, the USD-KRW exchange rate opened at 1,428 won, down 21.9 won from the previous trading day.

On that day, the weekly closing price of the won-dollar exchange rate in the Seoul foreign exchange market (as of 3:30 PM) recorded 1,424.1 won, down 25.8 won from the previous trading day. Based on the weekly closing price, this is the lowest level in about four months since December 6 last year (1,419.2 won).

The exchange rate opened at 1,428.0 won, down 21.9 won from the previous trading day. It jumped to 1,432.7 won in the early session before moving around the mid-1420 won level.

The won's strength on that day was due to the global weak dollar trend strengthened by U.S. President Donald Trump's aggressive tariff policies. The dollar index, which represents the value of the dollar against six major currencies, plunged to 99.00 on the 11th before slightly rebounding but still remained below 100. Overnight, President Trump reaffirmed his stance to impose reciprocal tariffs on semiconductors and other electronic products.

Experts expect the exchange rate volatility to continue for the time being due to the impact of the tariff war. Kim Chan-hee, a researcher at Shinhan Investment Corp., said, "The foreign exchange market trend will continue to be influenced by uncertainties surrounding Trump's tariff policies for the time being. If progress in negotiations with other countries materializes or if easing of conflicts with China is confirmed, the dollar will rebound. However, if the situation remains stagnant, funds will continue to flow into the yen and Swiss franc." Kwon Ah-min, a researcher at NH Investment & Securities, said, "I had forecast the annual lower bound of the dollar index at around 97 this year, but given the rapid deterioration of U.S. growth prospects due to the intensifying tariff war, the lower bound is likely to fall further."