Won exceeds 1,400 mark as investors flock to dollars after Trump win

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Won exceeds 1,400 mark as investors flock to dollars after Trump win

Published: 07 Nov. 2024, 10:37

SHIN HA-NEE
shin.hanee@joongang.co.kr

An electronic screen shows the Kospi and the won-dollar exchange rate at Hana Bank's dealing room in central Seoul on Thursday. [NEWS1]

The won-dollar exchange rate exceeded the 1,400-won mark on Thursday, as the local currency sharply lost ground against the greenback, with Donald Trump’s victory in the U.S. presidential election prompting investors to flock to dollars.

The won-dollar rate began trading at 1,401.1 won on Thursday morning, up 4.9 won from the previous closing rate of 1,396.2 won at 3:30 p.m. on Wednesday, and stood at 1,401.7 won at around 10:10 a.m.

The won soared as high as 1,405 won during overnight trading before closing at 1,399.3 won at 2 a.m.

This was the first time since April 16, when the rate reached 1,400 won mid-trading, that the won-dollar rate exceeded this threshold.

Finance Minister Choi Sang-mok speaks during an economic ministerial meeting held at the government complex in central Seoul on Thursday, following Donald Trump's victory in the U.S. presidential election. [YONHAP]

The exchange rate has surpassed the 1,400-won mark only during three major financial crises: the 1997 Asian financial crisis, the 2008 global financial crisis and the 2022 post-pandemic monetary tightening.

Amid the fluctuating market, the government held a ministerial meeting on Thursday morning following Trump’s election victory.

Finance Minister Choi Sang-mok vowed to continue strong economic cooperation but also noted that “if the economic policy direction proposed by the president-elect so far is realized, its impact on the Korean economy would be significant.”

While promising to closely monitor the situation, the minister said that the government would take necessary measures if volatility expands excessively.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]