Editor's PiCK
Won-dollar exchange rate tops 1,480 intraday for the first time in a month
공유하기
Summary
- The won-dollar exchange rate was reported to have again topped 1,480 won intraday, extending its upward momentum.
- It said risk-asset sentiment has weakened amid a Trump-driven trade war and a warning of tariffs, which is weighing on the won.
- It noted that concentrated dollar buying tied to increased overseas equity investment since the start of the year is pushing the exchange rate higher, though the potential for currency authorities to fine-tune could cap the upside.
The won-dollar exchange rate has climbed back above 1,480. The move is seen as driven by increased demand for safe-haven assets as tensions between the United States and Europe intensify.
As of 10 a.m. on the 21st, the won-dollar exchange rate stood at 1,479.8. After opening at 1,480.4, up 2.3 won from the previous session, it has been fluctuating around 1,480. This marks the first time in 17 trading sessions that the rate has started trading in the 1,480 range, since Dec. 24 last year (1,484.9).
After falling to the 1,420s intraday late last year on stabilization measures by currency authorities, the exchange rate is now tracing an upward path again. Risk-asset sentiment has weakened as concerns about a Trump-driven trade war have escalated. US President Donald Trump said he would impose tariffs of 10% starting next month on the eight European countries that deployed troops to Greenland, and raise the rate to 25% starting June 1.
Woori Bank presented an expected trading range of 1,475–1,483 for the day. Min Kyung-won, a researcher at Woori Bank, said, "European countries may have room to pressure the US based on US Treasuries and stocks worth as much as $8 trillion they hold," adding, "This is a factor that weighs on the won, a risk currency."
He added, "The fact that flows are skewed toward dollar buying is likely to provide a pretext for the exchange rate to rise," and said, "Since the start of the year, dollar conversion demand tied to an increase in residents’ overseas equity investment is expected to drive buying."
The possibility of fine-tuning by currency authorities is cited as a factor that could cap the upside. Min said, "1,480 is the level at which authorities’ market stabilization measures were triggered last month," adding, "There is also a shared view that authorities could step in with fine-tuning if the exchange rate rises today. We believe caution about a peak could narrow the gains."
Jin Young-gi, Hankyung.com reporter young71@hankyung.com
