Won-Dollar Exchange Rate Closes at 1,541, Highest in 17 Years Since Financial Crisis

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The won-dollar exchange rate soared to 1,541 won today (June 24). This marks the first time the closing price has reached the 1,540-won range in 17 years, since the 2009 global financial crisis. The surge is attributed to a combination of foreign capital outflows from the domestic stock market and the strengthening of the U.S. dollar.

Reporter Lee Tae-kwon has the story.

[Reporter]

This is a logistics warehouse at Incheon International Airport.

It is a hub for goods purchased directly from overseas, but the volume has decreased slightly this year.

[Jo Ju-seong / Team Leader, Information Analysis Team, Incheon Airport Customs: As of May, the cumulative volume of express cargo brought into Incheon Airport Customs this year is approximately 47 million units, a decrease of about 3% compared to the same period last year.]

The persistent high exchange rate has eroded the benefits of direct overseas purchases.

[Lee Chi-won / Yeongdeungpo-gu, Seoul: I mainly buy cosmetics, but now that the exchange rate has risen so much, items that used to cost 20,000 won are now selling for 40,000 won, so there is no point in buying them directly.]

The won-dollar exchange rate closed today's daytime trading at 1,541.8 won, up 2.7 won from yesterday.

It is the first time the rate has exceeded 1,540 won in 17 years, dating back to the 2009 global financial crisis.

The won-dollar exchange rate has remained above the 1,500-won level for over a month since May 15, and it has shown little sign of falling even after the end of the war in Iran.

The primary cause is the outflow of foreign capital, with foreigners selling over 132 trillion won in KOSPI stocks alone this year.

[Seok Byung-hoon / Professor of Economics, Ewha Womans University: Foreign investment capital is exiting rapidly, increasing the demand for dollars. Meanwhile, our export companies have no reason to convert the dollars they earned from exports into won due to their investments in the U.S.]

Recently, the possibility of U.S. interest rate hikes has also pushed up the value of the dollar against major currencies.

[Min Gyeong-won / Economist, Woori Bank: The market has already priced in the possibility that the Federal Reserve could raise interest rates as early as September. That is driving the global strength of the dollar.]

Although the Bank of Korea has signaled a base interest rate hike, its effect on the exchange rate is expected to be limited due to the U.S. shift in monetary policy, raising concerns that the high exchange rate in the 1,500-won range could become the "new normal."

Reported by Kim Heung-gi | Video by Park Chun-bae | Graphics by Lee Jun-ho
※ Please note: This article was translated by AI and may contain errors.