Won-Dollar Exchange Rate Surpasses 1,460 Won, Closes at 7-Month High (Update)

Closed the Week at 1,463.3 Won, Highest Since April
Yen Weakens on Possible Expansion of Japanese Fiscal Spending
Strong Dollar Trend Continues Amid Prospects of U.S. Government Shutdown Ending

The won-dollar exchange rate closed the weekly trading session above 1,460 won on November 11. The rise was amplified by a combination of yen weakness and dollar strength.

On the 11th, a dealer is working in the dealing room at the Shinhan Bank headquarters in Seoul. Photo by Shinhan Bank

On this day, the won-dollar exchange rate in the Seoul foreign exchange market ended weekly trading at 1,463.3 won as of 3:30 p.m., up 11.9 won from the previous trading day. This marks the highest level in about seven months since April 9, when it reached 1,481.1 won. Considering that the rate had dropped to 1,424.4 won on October 31 following news of a Korea-US tariff agreement at the end of last month, it has jumped 38.9 won in just over ten days. Compared to a week ago, on November 4 (1,437.9 won), the rate has risen by 25.4 won, showing a sharp increase in a short period.

The won-dollar exchange rate opened at 1,456.4 won at 9:00 a.m., up 5.0 won from the previous trading day, and surpassed 1,460 won within an hour. The intraday high was 1,467.5 won.

This upward trend was driven by Japanese Prime Minister Sanae Takaichi’s remarks about expanding fiscal spending, which triggered yen weakness and led to a broader decline in Asian currencies. At the previous day’s growth strategy meeting, Prime Minister Takaichi expressed her commitment to economic stimulus, stating, "If investment does not increase, the economy will not grow."

The process of ending the U.S. federal government shutdown also contributed to the strong dollar trend. Eight centrist Democratic senators in the U.S. Senate shifted their stance to support a temporary budget bill, leaving only the Senate’s passage of the bill and approval in the House of Representatives, where the Republican Party holds the majority, before the shutdown can officially end.

Although the domestic stock market rebounded and foreign investors turned net buyers, analysts noted that the global strong dollar trend limited downward pressure. The dollar index (DXY), which measures the value of the dollar against six major currencies, stood at 99.62, up 0.01% from the previous day.

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