Won-dollar exchange rate falls to 1,103.8, lowest level in 29 months

KOSPI closes at record high for 2020

The trading room at KEB Hana Bank’s headquarters in Seoul on Nov. 18. (Yonhap News)

The won-to-dollar exchange rate continued its slide on Nov. 18 to reach its lowest level in 29 months. Despite vocal intervention by authorities pledging to respond to the recent exchange rate fluctuations, the continued strength of the won does not appear to be fading.

On Nov. 18, the exchange rate finished the day down 2.8 to 1,103.8 won to the dollar on the Seoul foreign exchange market. It was the lowest level since June 15, 2018, when the rate reached 1,097.7 won to the dollar. During the afternoon, the exchange rate showed a clear trend of decline amid the strength of the Chinese yuan.

Even with fears of a renewed wave in the COVID-19 pandemic, the won-to-dollar exchange rate has continued to drop amid anticipation for vaccine development and predictions of large-scale support policy measures. The US dollar has been weak against other major currencies as lower-than-expected US consumption indicators have fanned expectations of additional support measures. Foreign exchange authorities have warned openly of aggressive action in response to excessive strain on the exchange rate.

The KOSPI finished the day on an upward trend as it closed at 2,545.64, a rise of 6.49 points (0.26%) from the previous trading day. The number broke the record high closing price for the year of 2,543.03, which had been reached two days earlier on Nov. 16. The KOSDAQ finished the day at 851.74 points, up by 12.27 (1.46%) from the day before.

By Kim Young-bae, staff reporter

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