Firms Accumulate Dollars Amid High Exchange Rate Near 1500 Won

As the won-dollar exchange rate remains stubbornly above the 1500 won mark, companies are showing a clear tendency to buy dollars before the rate climbs even higher.

This strategy aims to mitigate exchange rate fluctuation risks, and has resulted in corporate dollar deposits increasing to their highest level in three years and five months.

The backdrop for this phenomenon is the combination of a high exchange rate and heightened volatility. In June, the average won-dollar exchange rate stood at 1523.3 won (based on weekly closing prices), the highest since February 1998. The daily fluctuation range for the exchange rate widened to 10.1 won this month, up from 6.6 won in May.