The won-dollar exchange rate once exceeded 1,450 won due to shock of 'U.S. interest rate cut'

Won-Dollar exchange rate tops 1,450 won in early trading on strong dollar
It is the first time in 15 years and 9 months that the intraday exchange rate has exceeded 1,450 won
KOSPI and KOSDAQ both start sharply lower by more than 2 percent

[Anchor]
The won-dollar exchange rate surpassed 1,450 won in early trading due to the strong dollar on the prospect of a delay in the U.S. benchmark rate cut.

Today (19th) our stock market started with a sharp decline of more than 2% for both KOSPI and KOSDAQ, continuing a weak trend.

I'm connecting with the reporter. Reporter Choi Doohee!

The won-dollar exchange rate today was once the highest level since the global financial crisis in the morning, how is the situation in the afternoon?

[Reporter]
Yes. As you said, the won-dollar exchange rate in the Seoul foreign exchange market opened at 1,453 won, up more than 17 won from the previous trading day.

It is the first time in 15 years and 9 months that the intraday exchange rate has exceeded 1,450 won since March 2009 during the global financial crisis.The

won-dollar exchange rate is currently moving up and down around 1,450 won.

The KOSPI, which had rebounded in three trading days yesterday (18th), also froze again in one day.

In the stock market today (19th), the KOSPI started at 2,426.55, down more than 2% from the previous trading day.

However, it is moving up and down the 2,440 level in the afternoon following the morning as it has reduced its fall to around 1% on the back of individual buying.

The KOSDAQ index also began to fall by more than 2% from the previous trading day and has continued to flow around 680 in the afternoon.

As well as the value of the Korean won, our stock market declined because the U.S. Federal Reserve decided to cut its key interest rate by 0.25 percentage points last night, indicating that it would slow the rate cut next year.

While political uncertainty has not been completely resolved by the impeachment, the financial market seems to be shaking as the shock from the U.S. is added.

[Anchor]
In this situation, the foreign exchange authorities also issued a message to stabilize the market, right?

[Reporter]
Yes. Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok predicted that our financial and foreign exchange markets could also expand volatility in the short term as a result of the U.S. Fed meeting.

It said it would implement additional market stabilization measures boldly and quickly in response to excessive volatility.

Let's listen to Deputy Prime Minister Choi.

[Choi Sang-mok / Deputy Prime Minister and Minister of Strategy and Finance: The Korean financial and foreign exchange markets are also expected to see increased volatility in the short term, as major currencies around the world have weakened significantly. However, excessive leaning in one direction may involve a large reaction in the opposite direction in the future. As a result, it is time for market participants to respond calmly. The government and the Bank of Korea will continue to operate the 24-hour financial and foreign exchange market inspection system with high vigilance and implement additional market stabilization measures boldly and quickly in case of excessive volatility.]

In the meantime, the foreign exchange authorities have expanded the foreign exchange swap limit with the National Pension Service to $65 billion.

The contract deadline was also extended by one more year from the end of this year to the end of next year.

As a result, attention is being paid to whether the national pension can stabilize the current high exchange rate situation as it can reduce demand for dollar purchases if the national pension is obtained from the foreign exchange authorities.

This has been YTN's Choi Doohee.