The Korean won-to-dollar exchange rate opened at 1,402.0 won, up 5.8 won from the previous day’s closing rate on Nov. 7. The recent rally in the dollar appears to be driven by former U.S. President Donald Trump’s victory in the presidential election, which has intensified the dollar’s upward momentum.
According to the Seoul Foreign Exchange Committee (FXC), the won-dollar exchange rate started at 1,402.0 won, up from the previous trading day’s closing price of 1,396.2 won, and 2.7 won higher than the closing price of 1,399.3 won. This is the first time in two years that the opening exchange rate exceeded 1,400 won, a level last seen on Nov. 7, 2022, when it reached 1,411 won. However, after opening, the rate quickly fell, dropping to 1,399 won by 9:06 a.m.
The market views Donald Trump’s win in the U.S. presidential election as the primary reason for the won surpassing 1,400 won. Previously, Trump has pledged to implement policies focused on substantial fiscal spending and tariff hikes, which, if realized, are anticipated to strengthen the dollar further.
Indeed, the dollar has been gaining strength since Trump’s victory. According to Investing.com, a global financial portal, the dollar index, which measures the value of the dollar against six major currencies, exceeded 105 the previous day. The index, which last rose above 105 on July. 11, has now reached its highest level in four months.
Market analysts anticipate the exchange rate could reach up to 1,407 won today. Min Kyung-won, a researcher at Woori Bank, noted, “The rate is likely to rise today due to the dollar rally following Trump’s victory and increased demand for currency exchange as investors buy overseas stocks.”
Wi Jae-hyun, an economist at NH Futures, observed, “Today’s strong dollar is driven by market anticipation of a ‘red sweep’ by Republicans in both the Senate and the House. With investors watching closely for the final U.S. House results, the exchange rate is likely to stay in the low 1,400s.”
