Won-Dollar Exchange Rate Hits Decade High

As of 9:05 a.m. on April 9, the won-dollar exchange rate has surged to its highest level in over a decade, trading at 1,486.9 won. This significant increase reflects the escalating tensions in the global trade arena, particularly between the United States and China.

Global Trade War Intensifies

The recent spike in the exchange rate is largely attributed to the intensifying trade war between the United States and China. Concerns over a U.S. economic slowdown initially led to a temporary drop in the exchange rate, but it rebounded swiftly as major countries, including China, reacted against tariffs imposed by former President Trump.

Market Reactions and Implications

This tit-for-tat tariff exchange has heightened risk aversion among investors, leading to significant declines in stock markets globally. In South Korea, the KOSPI index was trading at 2,331.49, down by 0.12%, with foreign investors offloading stocks worth approximately 21.8 billion won.

Future Outlook

Lee Min-hyuk, a researcher at Kookmin Bank, commented on these developments: "The signs of an escalating global trade war, such as Trump's threat of additional tariffs on China, are stimulating dollar strength." He further noted that "the risk-averse sentiment, including stock market adjustments, is expected to continue leading to further weakness in won-denominated assets."