The won's weakness is forecast to accelerate due to a string of factors, including the heightened geopolitical risk resulting from the North Korean provocations and the strength of the US dollar caused by the tightening of monetary policies in major countries.
The decline in won's value can help improve Korea's exports but contribute to promoting the outflow of foreign capital, thereby increasing the uneasiness of the financial market.
According to a survey conducted with members of the Korea Economic Daily Economist Club on July 9, 60 percent of the respondents predicted that the won-dollar exchange rate would continue to rise. About a half of them replied that the rate would reach about 1,200 won by the end of this year.
After sliding to the 1,100-won level in early this year, the won-dollar exchange rate, thereafter, continued to rise steadily, closing at 1,154.30 on July 7, up 3.1 percent or 34.80 won compared to a month ago. firstname.lastname@example.org