There are so many people panicking over the
1. There are so many people panicking over the exchange rate right now. Personally, I was very annoyed because it coincided with the domestic political situation..
If you look at martial law alone, the effect seems to be about 5% and 70 won in value..
The rest seems to be Trump's tariff barrier problem and sluggish exports due to China's rapid progress.
2. So, Korea is in trouble because it's ruined. China and Germany, another competitor, are also growing negatively. It's in the Eurozone, but if it existed as a Mark currency, it would have been quite absent.
Although it is better than Korea, Taiwan continues to decline, and Australia/New Zealand, which has a lot of resources, is missing as much as Korea.
3. That's the dollar's bull market, because the U.S. can't control inflation, because of Trump's tariff barrier, because the U.S. market is hot, global funds are heading to the U.S. without limits..
The U.S. isn't just enjoying the situation either. Any more dollar strengthening isn't helping the U.S. What's the point of collecting tariffs? That's how many other currencies are depreciated..
4. The super dollar is likely to calm down next year.. The exchange rate will be higher than in the past, but I think if it is stable in that situation, global funds will come back to Korea and the stock market will rise above a certain level.
The time for everyone to be pessimistic is when they are optimistic. That's right. The current strength of the dollar comes as the Federal Reserve has hinted at the possibility of no rate cuts next year. This has caused all currencies in the G20 countries to weaken against the dollar over the past month. For the Korean won, there has been a moderate decline among the G20 countries.
In particular, the rise in the dollar-won exchange rate can be seen as a result of the combination of domestic political uncertainty and the Fed's continued tight monetary policy. These factors are compounding and deepening the weakening of the won.