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Won-Dollar Rate Closes at 998.9 Won

Posted April. 25, 2005 23:29,   


The won-dollar rate fell for the sixth consecutive day (stronger won against the dollar), breaking the 1,000 won level, and is returning to the “three-digit exchange rate era.”

Based on the closing price, the exchange rate fell below the 1,000 won mark seven years and five months after the crash on November 14, 1997 (986.3 won), which was right before the foreign exchange crisis.

It seems that due to the fall, the price competitiveness of exporting companies will weaken even more, and if domestic demands do not revive, it will become a huge burden to the country’s economy.

The won-dollar rate for Wednesday, April 25 started out at 1,000 won per dollar, 4.0 won lower than the closing price on April 22, and closed at 998.9 won.

The governor of the People’s Bank of China had stated a possible yuan-dollar revaluation, which seems to have highly affected the dollar and weakened it against the yen and euro in the foreign exchange market.

As the won-dollar currency exchange rate fell to a three-digit figure, the foreign exchange authority stepped up with a verbal intervention, and the currency rate rose for a short time as importing firms settling in dollars flowed out. However, with exporting companies continuously putting up dollar-based products for sale, the rate eventually fell below the 1,000 won level.

Kyung-Joon Chung news91@donga.com