Image: Graph of USD-KRW exchange range for the past year. Credit: Ministry of Strategy and Finance.
On April 28, the intraday exchange rate between South Korean won and US dollar hit KRW 1270 for USD 1, marking the highest point for USD since March 2020 when the onset of the COVID-19 pandemic shocked the global economy.
The exchange rate is rising because uncertainties from the Ukraine-Russia War and China’s pandemic lockdown are pushing investors to amass safer assets in USD, while other major currencies such as the Euro have come under pressure.
Lee Eok-won 이억원, First Vice Minister of Finance and Strategy 기획재정부 제1차관, said on April 29: “The government is closely monitoring the foreign exchange market and will take measures to stabilize the market if a run occurs.”
