The South Korean won lost more than 3 percent against the U.S. dollar almost as much as the Chinese yuan after the trade war between the United States and China became real.
According to the Bank of Korea on Wednesday, the U.S. dollar gained 3.1 percent from 1,077.7 won closing on May 31 to 1,112.2 won finish on Monday - almost equal to its 3.2 percent jump against the Chinese yuan, a currency against which Uncle Sam has been waging the most expansive and costly trade war - during the same period.
[Graphics by Song Ji-yoon]
The BOK said the Korean currency has been hit hard amidst fear that Korean exports could be victimized in the crossfire as the bulk of shipments to China are intermediary products that go into the finished goods China exports to the U.S. and are subject to heavy tariffs. The won closed Wednesday higher at 1,112.2.
Moreover, authorities can no longer outright intervene in the market to ease the volatility after Seoul agreed to regularly disclose currency interventions at the demands of Washington and the International Monetary Fund.
The yen also gained from 991.1 won to 1,006.9 won during the cited period as yen is also preferred as safer assets along with the greenback at times of uncertainties.
By Kim In-oh and Lee Eun-joo
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]