The won-dollar exchange rate started at the 1,420 won level for the second consecutive day. The decline continues as the dollar weakens due to uncertainty regarding the United States' reciprocal tariff policies. Some predict that the exchange rate could soon drop to the 1,410 won level.
On the 15th, the won-dollar exchange rate in the Seoul foreign exchange market started at 1,422 won, down 2.1 won from the previous transaction day's closing price (as of 3:30 p.m.) of 1,424.1 won. This marks the second trading day that the exchange rate has started at the 1,420 won level, following the previous day’s rate of 1,428 won.
The global weak dollar phenomenon led by uncertainty in U.S. trade policies and concerns over economic slowdown has driven the decline in exchange rates. According to Investing.com, the dollar index (DXY), which shows the value of the dollar against six major currencies, recorded 99.87 as of 9:10 a.m., remaining below 100 for the third consecutive trading day.
The recovery of suppressed risk appetite has also fueled the decline in exchange rates. U.S. President Donald Trump has noted the possibility of eliminating tariffs on automobiles, and he decided to exempt significant tariffs on major electronics, which has boosted investor sentiment toward risk assets.
On the 14th (local time), the three major indices on the New York Stock Exchange, including the Dow Jones (+0.78%), S&P 500 (+0.79%), and Nasdaq (+0.64%), closed higher. A favorable trend is also present in the domestic stock market. The KOSPI opened up 8.62 points (0.35%) at 2,464.51. The KOSDAQ also opened higher at 709.51, up 0.53 points (0.07%).
Min Kyung-won, a researcher at Woori Bank, predicted that the exchange rate could fall below 1,420 won. He noted, "There is a high possibility that risk assets will continue to rebound, and the domestic stock market is expected to rise, thanks to a resumption of foreign net buying," adding that "given the decline in the exchange rate and the remaining additional downward risks, there could also be an influx of selling pressure from exporters."
Wi Jae-hyun, an economist at NH Futures, viewed the lower limit of the exchange rate at 1,417 won. He stated, "Trump has also hinted at the possibility of reducing automobile tariffs, and U.S. Treasury Secretary Scott Vessenst will hold tariff negotiations with South Korea next week," adding that, "If foreign buying pressure flows into the domestic stock market, the won-dollar exchange rate is likely to attempt to enter the 1,410 won range."