Dollar-Won Exchange Rate Faces Greater Risk After May 14 as War and Capital Flows Shift

The dollar-won exchange rate may face greater risk after May 14. The reason is that the phase of the Middle East war has changed since April, while domestic capital flows have also shifted. In late March, the dollar-won rate once surged to 1,536.9 won. As conditions changed afterward, it fell to an intraday low of 1,439.6 won on May 6. However, contrary to expectations that the exchange-rate issue would be resolved once the war ended, the changing war situation and capital movements could again increase currency risk. Markets need to keep monitoring how developments in the Middle East and domestic fund flows affect the value of the won. Source: mk.co.kr