President Lee's 'Verbal Intervention'... Exchange Rate, Which Surpassed 1,480 Won, Closes Lower After Four Sessions (Update)

Won-Dollar Exchange Rate Closes at 1,471.3 Won on January 21, Down 6.8 Won from Previous Day
President Stresses Determination to Respond to Exchange Rate, Halting Upward Trend
"According to authorities, the exchange rate is expected to fall to aro

On the 21st, the won-dollar exchange rate, which had climbed to the 1,480 won range during the day, fell after President Lee Jae-myung made comments about the exchange rate, ending weaker for the first time in four trading days.

President Lee Jae-myung is answering reporters' questions at the New Year's press conference held at the Blue House State Guest House on the 21st. Photo by Yonhap News

On this day, the won-dollar exchange rate closed weekly trading at 1,471.3 won, down 6.8 won from the previous trading day in the Seoul foreign exchange market (as of 3:30 p.m.). This marks the first decline in four trading days since January 15, when U.S. Treasury Secretary Scott Bessent pointed out that the depreciation of the won "does not align with Korea's strong fundamentals," which led to a drop in the exchange rate.

The exchange rate opened at 1,480.4 won, up 2.3 won from the previous day, and rose to as high as 1,481.4 won in early trading. This was the first time since December 24 that the opening price exceeded 1,480 won. Risk aversion sentiment intensified as concerns grew over U.S. President Donald Trump's tariff threats on Greenland, fueling 'sell America' fears.

The exchange rate plunged after President Lee's related remarks. At the New Year's press conference, President Lee stated, "According to the responsible authorities, it is predicted that the exchange rate will fall to around 1,400 won in about one or two months," adding, "We will continue to seek all possible measures to stabilize the exchange rate." Following these comments, the exchange rate dropped to as low as 1,467.7 won during the session. It is also known that the National Pension Service is expected to adjust its portfolio at this year's first Fund Management Committee meeting on the 26th, reducing overseas investments and increasing domestic investments.

Bank of Korea Governor Rhee Chang-yong responded to reporters' questions about President Lee's comments on the exchange rate, saying, "The current exchange rate level is high by any model or standard, which is why President Lee said it would return. There is significant room for adjustment if expectations change." He added, "If there is no currency hedging, I am concerned about what kind of shock might occur if the exchange rate adjusts. We do not know when the adjustment will happen, but we must be well prepared for it."

The dollar index, which shows the value of the dollar against the currencies of six major countries, was 98.576, down 0.39% from the previous trading day. The yen-dollar exchange rate was 158.145 yen, down 0.19%, but still at a high level.