The exchange rate of the dollar won falls intraday 1,100 won in 2 years and 6 months

Input 2020.12.03 11:09

The won-dollar exchange rate fell below 1100 won in two years and six months. US stimulus and good news related to vaccines are increasing market preference for risky assets.

In the Seoul exchange market on the 3rd, the won-dollar exchange rate is trading at 1098.5 won, down 2.3 won from the previous trading day at 10:55. This is the first time since June 2018 that the won-dollar exchange rate has fallen below 1,100 won during the intraday. On this day, the exchange rate started at 1100.1 won, down 0.7 won and started plummeting around 10:30 am.

The dollar won exchange rate continues to decline thanks to a preference for risky assets. As US stimulus negotiations become visible, global financial markets are responding sensitively to the good news. US House Speaker Nancy Pelosi and Democratic Senate Representative Chuck Schumer said they will use the $ 90.8 billion stimulus plan proposed by non-party lawmakers as a basis for negotiations between the two Houses.

Central bank stimulus measures should also continue. Fed Chairman Jerome Powell told the House of Representatives that he will keep interest rates at low levels until the risks associated with COVID-19 are completely eliminated and provide economic stimulus until it is no longer needed. Additionally, the UK government’s first approval of the use of the COVID-19 vaccine by pharmaceutical companies Pfizer and Bioentech and that it will begin vaccination next week is also increasing the sentiment of preference for risk.

The dollar has been weak recently. Last night, the US dollar index fell 0.34% to 91.01 against the currencies of the six major countries. While downward pressure on the exchange rate is expected to remain strong, intervention by exchange authorities, importer settlement and demand for cheap dollar purchases should limit the extent of the exchange rate decline.

Samsung Futures researcher Jeon Seung-ji said: “Between risk preference and weak dollar flow, positive win news, such as exports and subsequent ship orders, are spurring the dollar to sell out. of the region”. “I said.