Korean Won Strongest Against US Dollar in Foreign Exchange
Markets
The Korean won set a new record high against the US dollar, highest since 1998, closing at 910 won to the dollar in foreign exchange markets yesterday. For the exchange rate between the Korean won and the Japanese yen, won has closed at 800 won to 100 yen since last month.
According to the Seoul Foreign Exchange Market, investors sold the greenback hoping that the US Federal Reserve would lower its interest rates next year. The won fell 7.90 won more to the dollar, closing at 916.40 won yesterday.
According to a source from the Seoul Foreign Exchange Market, it is first time that the Korean won fell below 915 won since 1997. It was the strongest close since October 1997 as well. The Korean won started at 920.50 won to the US dollar in the morning market, but as corporate investors poured capital into the market, the won plunged to 919 won to the dollar.
Analysts explain that exporters have been putting the dollar to drop consecutively. The won has risen nearly 10 percent against the dollar. Hong Seung Mo from Shinhan Bank says, “The bearish trend of the US dollar in foreign exchange markets triggered the Korean won to fall, and domestic banks also played a role by pouring their dollars into the market.”
A researcher at Samsung said, “When signs appeared that foreign exchange rates of the Japanese yen and the US dollar to the Korean won would quickly fall, the government did not make an active defense to stop the drop of the won in the market. I think that it won’t be easy to maintain even the current Korean exchange rate to the dollar.”
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 / 입력시간: 2006. 12.08. 10:11
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