Won-Dollar Exchange Rate Stays Above 1,500 for 12th Straight Trading Day

The won-dollar exchange rate has remained above 1,500 won for 12 consecutive trading days, surpassing the record set during the global financial crisis. Pressure for a weaker won continues to mount as uncertainties surrounding the Middle East, rising international oil prices, and net selling of stocks by foreign investors converge.

This exchange rate volatility impacts the domestic stock market. A deepening outflow of foreign capital could lead to stock price declines, potentially increasing market volatility. While exporting companies might see some benefits from currency translation gains, those with high import dependency or relying on imported raw materials could face increased costs and management difficulties.

Domestic financial authorities are considering various policy tools, including intervention in the foreign exchange market, to stabilize the market. However, as external factors such as Middle East risks and international oil price fluctuations persist, the pressure for a weaker won is likely to continue for the time being.