Plunged Exchange Rate: Now 1285 vs. One Dollar

Korean Won exchange rate to the US dollar has daily plunged by the influence of the strong Yen. Won-dollar exchange rate closed with 1285.00 won at the foreign exchange market yesterday, which was 11.5 won lower than the previous day. It is influenced by the strong Yen that plunged 2.0 Yen from 123.1 Yen to 121.1 Yen against the one US dollar.

The exchange rate of Korean currency to the US dollar once dropped down to 1282 won by the influence of the fall of Yen but it bounced back a little bit by the inducement of low-price buyers.

Lee Eung-Baek, the team director of the Foreign Exchange team of the Bank of Korea, said that the fall of exchange rate reflects the weakness of Euro money in accordance with the gloomy anticipation of European economy. ``Japanese investors in Europe returned the funds to Japan and foreign investment also surged into the Japanese market due to the rise of Nikkei stock price after the inauguration of Japanese Prime Minister,`` he analyzed.

However, because of the unstable Japanese economy, Yen-dollar exchange rate is anticipated to fluctuate within 122 – 124, and correspondingly Won-dollar exchange rate will fluctuate within 1290 – 1310 for the time being.

Lee Na-Yeon larosa@donga.com