Won-Dollar Exchange Rate Hits Six-Month Low

The won-dollar exchange rate experienced a significant drop to the 1,380 won range on May 16, marking its lowest level in about six months. This shift is attributed to a combination of global dollar weakness and growing expectations of won strength.

Factors Influencing the Exchange Rate

The exchange rate's decline was further influenced by expectations of U.S. interest rate cuts, which have been pulling down the dollar's value. The Dollar Index (DXY) reflected this trend, recording a 0.23% decrease from the previous day.

Impact of Trade Policies

Trade policy discussions, particularly the upcoming third round of tariff negotiations between the United States and Japan, are also affecting exchange rate trends. Experts suggest that these negotiations could increase appreciation pressure on Asian currencies.

Expert Insights

Prof. Kang In-soo from Sookmyung Women's University highlighted the U.S. administration's efforts to address trade deficits through dollar weakness, predicting that this trend may continue in the near future.