Korean Won Weakens Against US Dollar, Falling 2.1 Won
Seoul, South Korea – The Korean won weakened against the US dollar on Wednesday,falling 2.1 won to close at 1,382.2 won per dollar, according to the Korea Exchange Bank. This marks a slightdecline from the previous trading day.
The weakening of the won comes amid a broader trend of global currency fluctuations, with the US dollar strengthening against many major currencies.This is attributed to several factors, including rising interest rates in the United States and concerns about the global economic outlook.
Analysts suggest that the won’s depreciation could be influenced by a number of factors, including:
- Rising US interest rates:As the US Federal Reserve continues to raise interest rates, investors are drawn to US dollar assets, leading to increased demand for the dollar and a weakening of other currencies.
- Global economic uncertainty: Concerns about a potential global recession and geopolitical tensionsare also contributing to a risk-off sentiment in financial markets, which favors the US dollar as a safe-haven currency.
- South Korea’s economic outlook: While South Korea’s economy is expected to grow in 2024, concerns remain about the impact of rising inflation and slowing global demand.
Thedepreciation of the won could have implications for South Korea’s economy, potentially impacting exports and imports, as well as foreign investment. It remains to be seen how the won will perform in the coming days and weeks, as global economic conditions continue to evolve.
References:
- Korea Exchange Bank (2024, October 23). 15:30 Foreign Exchange Rate: 1 USD = 1,382.2 KRW. Retrieved from https://www.yonhapnews.co.kr/
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