Won-Dollar Exchange Rate Dips Below 900 Won

Amid the global weak-dollar trend, at one point yesterday, for the first time in 10 years and two months, the dollar-won exchange rate came down below 900 won. This gives rise to concerns that when a dramatic fall in exchange rate is coupled with further hikes in both oil and raw material prices, this can lead to worsening profitability and hamper economic recovery.

At the foreign currency market, the won-dollar exchange rate went down to 899.60 against a dollar, but closed the market at 900.70 won, down 6.30 won compared to the day before, thanks to the mass buying of dollars by related authorities.

It was the first time the won-dollar exchange rate fell below 900 won since August 28, 1997.

The government reaffirmed its commitment to stabilizing the value of won, however, and second assistant minister of finance and economy Lim Yeong-rok said, “Exchange rates are determined freely in the market, but the government will take necessary intervention steps to address problems such as speculative transactions or market disturbances.”

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