Exchange Rate Of Korean Won To Us Dollar
Korean Won is the official currency of South Korea, while the US Dollar is the official currency of the United States. The exchange rate between these two currencies is an important factor for businesses and individuals who trade between the two countries. In this article, we will explore the exchange rate of Korean Won to US Dollar, its history, factors that affect it, and its current status.
History of Korean Won to US Dollar Exchange Rate
The Korean Won was first introduced in 1902, replacing the old Korean Yen. At that time, the exchange rate between Korean Won and US Dollar was set at 5.8 Won per 1 Dollar. However, due to various economic and political factors, the exchange rate has fluctuated significantly over the years.
In the 1960s and 1970s, the Korean government maintained a fixed exchange rate system, pegging the Won to the US Dollar at a rate of 125 Won per 1 Dollar. This system was abandoned in the 1980s, and since then, the exchange rate has been determined by market forces.
Factors Affecting Korean Won to US Dollar Exchange Rate
Several factors can affect the exchange rate of Korean Won to US Dollar, including:
- Interest rates: Higher interest rates in a country make its currency more attractive to investors, leading to an increase in demand and appreciation of the currency. On the other hand, lower interest rates can lead to a decrease in demand and depreciation of the currency.
- Inflation: High inflation can decrease the value of a currency, leading to a depreciation of the currency. On the other hand, low inflation can increase the value of a currency, leading to an appreciation of the currency.
- GDP: A country with a higher GDP is generally considered more economically stable, leading to an increase in demand for its currency and appreciation of the currency.
- Political stability: Political instability in a country can lead to a decrease in demand for its currency and depreciation of the currency.
Current Exchange Rate of Korean Won to US Dollar
As of August 2021, the exchange rate of Korean Won to US Dollar is around 1,170 Won per 1 Dollar. This means that one US Dollar can buy around 1,170 Korean Won.
The exchange rate has been relatively stable in recent years, with minor fluctuations due to economic and political factors. However, it is important to note that exchange rates are subject to change, and businesses and individuals who trade between South Korea and the United States should stay informed about the latest exchange rate developments.
Conclusion
The exchange rate of Korean Won to US Dollar is an important factor for businesses and individuals who trade between South Korea and the United States. It has a long history and is influenced by various economic and political factors. Currently, the exchange rate is relatively stable, but it is subject to change in the future. By staying informed about the latest exchange rate developments, traders can make informed decisions about their transactions.