Dollar-Won Exchange Rate Nears 1,520, Driven by Capital Outflows and Global Strength

The dollar-won exchange rate is approaching the 1,520 won mark, fueled by a combination of foreign capital leaving South Korea and a robust global dollar trend. This surge marks an unusual period of high exchange rates, reminiscent of the financial crisis era, and is heightening concerns in the foreign exchange market.

International oil prices and U.S. Treasury yields have both climbed sharply amid worries of a prolonged conflict in the Middle East. This, coupled with significant selling of South Korean stocks by foreign investors, has intensified downward pressure on the won.

Analysts predict that if the high oil price and strong dollar environment persists, the exchange rate will likely struggle to fall below 1,500 won in the near future. The rate has already surpassed the 1,500 won level on 24 occasions this year, with the high point reaching 1,519.4 won on May 23rd.