"Weak Yen Triggers Strong Dollar" KRW-USD Exchange Rate Surpasses 1,430 Won (Update)

Prime Minister Takaichi to Continue 'Abenomics' Policies
Weak Yen Trend Expected to Persist for Now

The KRW-USD exchange rate opened above 1,430 won, influenced by the weak yen and strong dollar.

On the 22nd, the real-time KOSPI and KRW-USD exchange rate were displayed on the electronic board in the dealing room of Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News Agency

As of 9:11 a.m. on October 22, the KRW-USD exchange rate was trading at 1,432.2 won in the Seoul foreign exchange market, up 4.4 won from the previous week's closing price at 3:30 p.m. The exchange rate opened at 1,431.5 won, up 3.7 won from the previous trading day, and fluctuated around the 1,430 won level in early trading. This opening price marks the highest level in about six months since May 2, when it reached 1,436.0 won.

This is a result of the weaker yen and stronger dollar following Sanae Takaichi, leader of Japan’s Liberal Democratic Party, becoming Prime Minister. Prime Minister Takaichi is regarded as someone who will continue 'Abenomics,' which includes large-scale quantitative easing and increased fiscal spending.

Min Kyungwon, an economist at Woori Bank, said, "With the prevailing analysis that Prime Minister Takaichi’s inauguration introduces uncertainty regarding the Bank of Japan's interest rate hike outlook, the weak yen trend is expected to continue for the time being." He added, "Active buying by importers even at the 1,420 won level, demand for currency exchange by residents investing in U.S. stocks, and issues related to corporate overseas investments are also direct supply-demand factors that are increasing upward pressure on the exchange rate." However, he analyzed that "exporters selling at high points, authorities’ fine-tuning and the possibility of direct intervention will serve as resistance, so the upside is likely to be limited."

This content was produced with the assistance of AI translation services.