Manchester United players (back row, L to R) Park Ji-Sung, Patrice Evra, Wayne Rooney, Gary Neville and Cristiano Ronaldo smile during a photocall with (front row, L to R) AIG Chief Executive Martin Sullivan, Manchester United Chief Executive David Gill and manager Alex Ferguson at the Old Trafford Stadium in Manchester, northern England, April 6, 2006. The club announced a new shirt sponsorship deal with US insurance and finance company, American International Group (AIG). The four year deal is thought to be worth 56.5 million pounds ($98.98 million). REUTERS/Phil Noble



Korean Exchange Rate Falling to US Dollar

Owing to the unstable exchange rate of the Korean won to the US dollar that is continuously falling, domestic export-centered enterprises and the Korean government have paid close attention to the devaluation of the Korean currency to the dollar. In particular, since companies experienced a low exchange rate period last year, their fear about the falling exchange rate is growing and throwing reticent hatred toward the exchange market.

Yesterday, the opening of the Korean exchange market started at 960.80 won to the dollar, but fell to 950.20 won by closing time. A source believes that this unstable atmosphere is not because of a matter of demand and supply, but because of psychological matters.

Experts from the foreign exchange market expect the rate of decline of the Korean currency to dollar can be slightly controlled by the authorities for a while, but can’t block this stream over the long-term, anticipating that devaluation of Korean won to the USD will continue hereafter.

Though most domestic export enterprises predicted the exchange rate would not fall below 960 won to the USD, their expectation was wrong. Another source from the exchange market says that the won closed at its highest level in eight years and six months on weak dollar sentiment, finishing at 950.30 against the greenback in the Korean currency market yesterday.

Na Do Sung of the Ministry of Commerce, Industry and Energy said, “Because of a temporary influx of foreign currency into the Korean stock market and increasing exports, we consider this serious.” The won has risen sharply since the end of last month. It is the first time since Oct. 28, 1997 that the won-dollar exchange rate has fallen below the 960-won mark. The sharp rise of the Korean currency triggered a flood of stop-loss dollar sell orders from banks and exporters.
/ 입력시간: 2006. 04.07. 08:26