A Citibank trader said that South Korea's chip industry is driving economic growth, and the recent weakening of the Korean won may only be a temporary phenomenon; the won is expected to rebound against the US dollar before the end of the year. Lee Sanghun, head of transactions at Citibank Korea, said in an interview on Wednesday evening: “Due to external factors such as the hawkish stance of the Federal Reserve and concerns about inflation caused by rising oil prices, there is a risk that the won will fall below 1,400 won per dollar in the short term. However, I don't think the won will remain so weak for a long time, so around 1,400 won per dollar would be a good time to sell the dollar and buy the won.” The won experienced a two-month rise, making it the best-performing currency in Asia. However, the won fell for the fourth consecutive trading day on Thursday, hitting a minimum of 1388.25 won against the US dollar. The Federal Reserve's hawkish policy suppresses the won, and the US interest rate hike has widened interest spreads between the US and South Korea, and may reduce the attractiveness of South Korea's local assets. In early Friday trading, the won opened smoothly, and the exchange rate remained around 1381.00 won against the US dollar.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.