FIFA Secretary General Urs Linsi, left, and German referee Markus Merk pose with the official World Cup soccer ball prior to a news conference in Neu Isenburg, near Frankfurt, central Germany, Tuesday, March 21, 2006 on occasion of a five-day training program for the referees of the FIFA World Cup 2006 in Germany. (AP Photo/Michael Probst)



Exchange Rate of Korean Won to USD Down

The exchange rate of the Korean won to the US dollar was down again to 960 won. Until the middle of March the exchange rate of the won to the dollar rose to 980 won, but since yesterday it has been decreasing to 967.10 won, down 4.10 won compared to yesterday.

The opening exchange rate yesterday started at 966.90 won, the lowest rate since February 24. An expert working in the foreign exchange market believes it is because of the likelihood of a rise in American interest rates.

According to another capital expert who analyzed the reason the exchange rate of the Korean won continually goes down, this phenomenon is because Japan determined to stop its emergent currency policy that aimed to supply unlimited currency to the capital market. One other spark to decrease the value of the US dollar is because of a rumor coming out of the European Central Bank that it intends to raise interest rates again in May. In particular, a majority of foreign exchange market attendees forecast that the rate of the Korean won to the US dollar will decrease more since there is only a week left prior to Ben Shalom Bernanke's, newly inaugurated head of the Federal Reserve Board, first meeting, called the FOMC.

Regarding the exchange rate of the won to the dollar, a source from the Korean securities market predicts the rate will be down to 957 won before and after the FOMC meeting. A capital analyst from SK Securities said, “Because of expectation for revaluation of the Chinese Yuan, there is a likelihood that the exchange rate will fall to 945 won.”

Some other domestic financial institutes forecast that the exchange rate to the US dollar will continue to go down to between 920 and 930 won until the latter half of this year.
/ 입력시간: 2006. 03.22. 09:18