Tue Dec 03 14:10:00 UTC 2024: ## Won Falls Below 1400 to the Dollar After Brief Rebound
**Seoul, South Korea** – The South Korean won weakened against the US dollar, breaking the 1400 won mark for the first time in a week. The dollar/won exchange rate closed at 1401.30 won on Tuesday, a 6.6 won increase from the previous day’s close. This marks a return to levels seen before a brief period of strengthening for the won. While the won briefly surpassed the 1400 level earlier this month, reaching 1403.5 won on December 12th, its highest point since November 7, 2022, Tuesday’s close reflects a renewed weakening.
Analysts attribute the dollar’s strength to various factors, including lingering concerns about the US economy and slowing domestic growth in South Korea. However, some predict that a strengthening yen, fueled by expectations of a Bank of Japan interest rate hike, could alleviate pressure on the won and lessen the impact of a strong dollar. This divergence in monetary policy between Japan and the US could ease the pressure on the won, leading to a potential unwinding of dollar-long positions in the offshore market. The 1400 won level is seen as a key psychological barrier, with authorities potentially needing to intervene if the won continues to weaken significantly.
First Piper 