Dollar Reaches 1,110 Won

The Korean won to US dollar exchange rate has dropped to 1,110 for the first time in 50 months.

On October 5, in the Seoul Foreign Exchange Market, Won-Dollar Exchange Rate dropped by 2.80 won (Korean won value increase), which closed the day’s market at 1,110.60 won.

This is the lowest exchange rate since September 8, 2000 (1,108.60).

During this day, Won-Dollar Exchange Rate exchange rate started off at 1,111.50 won and dropped even more to 1,110.30 over the course of the day.

Won-Dollar Exchange Rate exchange rate dropped for the second day in a row following high expectations that President Bush will continue his contemporary “weak dollar policy” to make up for losses suffered after 9/11 aftermath (trade and financial deficits) permeated throughout the markets.

Also, after a high-ranking official from the People`s Bank of China hinted of a revaluation of the Yuan, the Japanese Yen accompanied other Asian currencies in a strong stance against the dollar.

A foreign currency market official said, “While domestic companies rushed to exchange dollars earned from exports, foreign stock investors also placed substantial volume for sale on the markets, depreciating the value of the dollar. However, because of the ‘buyers’ who adamantly defended the exchange rate from dropping below the 1,110 won line, the market was able to close without any further depreciations.”

Kang-Woon Lee kwoon90@donga.com