Exchange Rate Declines Amid Weak Dollar... Slight Rise to 1420 Won Level

The KRW-USD exchange rate remains at the 1,420 won level due to the global weak dollar.

As of 10:04 a.m. on the 17th in the Seoul foreign exchange market, the KRW-USD exchange rate is trading at 1,422.8 won.

The exchange rate started at 1,416 won, down 10.7 won from the previous day, and then rose to the 1,420 won level.

Overnight, the dollar weakened due to concerns about a U.S. economic recession.

Jerome Powell, Chairman of the U.S. Federal Reserve, warned at the Chicago Economic Club on the 16th (local time) that higher tariffs than expected by the Trump administration could lead to price increases and slower growth, and that the Fed may face a difficult situation in choosing whether to focus more on prices or growth.

The market expected that the strong won atmosphere could continue thanks to the weak dollar.

Woori Bank predicted, "Today's exchange rate will show downward pressure following the weak dollar," and expected it to continue in the early 1,410 won range.

On this day, the Bank of Korea's Monetary Policy Committee held a monetary policy direction meeting and decided to maintain the base rate at 2.75% per annum.

Kookmin Bank said, "Some volatility is expected at the Monetary Policy Committee press conference, but after the interest rate decision, the exchange rate will be under downward pressure in line with the weak dollar and strong yuan," and "the exchange rate will settle safely in the 1,410 won range."

Reporter Kim Yewon yen88@wowtv.co.kr