Won-Dollar Exchange Rate Surpasses 1,470 Won..."May Exceed 1,475 Won Today"

Due to external adverse factors such as the introduction of U.S. auto tariffs and internal uncertainties like political instability, the won-dollar exchange rate exceeded 1,470 won during the day. Experts worried that the exchange rate could surpass the annual high of 1,475 won in today's market.

On the 27th, the won-dollar exchange rate started weekly trading at 1,469.0 won, up 2.7 won from the previous day, in the Seoul foreign exchange market. Continuing its rise shortly after opening, the exchange rate reached the 1,471 won level in about 15 minutes and has been trading in the 1,470 won range since then.

U.S. President Donald Trump signed an executive order on the 26th (local time) imposing a 25% tariff on all imported cars. The tariff will take effect on April 3. Trump held a press conference at the White House, stating, "What we are going to do is impose a 25% tariff on all cars not produced in the United States," and "We expect an annual tax revenue increase of 100 billion dollars (about 147 trillion won) from the foreign car tariff."

Following this news, the New York stock market fell overnight. Meanwhile, the dollar index, which indicates the value of the dollar against six major currencies, rose 0.02% from the previous day to 104.57.

Cars are the largest export item for Korea. Therefore, experts feared that our exchange rate would face a clear won depreciation due to the overlap with domestic political situations.

Kookmin Bank stated, "The news of the auto tariff imposition has led to a simultaneous weakening of major non-U.S. currencies, and the risk-averse atmosphere due to the sharp decline in the New York stock market is also negative for the won," adding, "In addition, political uncertainty due to the delay in the presidential impeachment ruling acts as an upward factor for the exchange rate, and there is a possibility that today's exchange rate could reach the annual high (1,475 won)."

Kookmin Bank's projected won-dollar exchange rate band for today is 1,465~1,475 won.

Reporter Jeon Beom-jin forward@wowtv.co.kr