Exchange Rate Us Dollar To Korean Won History
The Beginning
South Korea had a fixed exchange rate system until the late 1980s. The won was pegged to the US dollar at a rate of 15 won per dollar. This system lasted until 1997 when South Korea was hit by the Asian financial crisis.
The Asian Financial Crisis
During the Asian financial crisis of 1997, South Korea's economy was hit hard. The government was forced to float the won and it quickly depreciated. At its lowest point, in January 1998, the exchange rate was 1,707 won per US dollar.
The Road to Recovery
South Korea implemented several economic reforms after the Asian financial crisis. These reforms helped stabilize the economy and the exchange rate. By 2001, the exchange rate had stabilized at around 1,200 won per US dollar.
The Global Financial Crisis
The global financial crisis of 2008 had a significant impact on South Korea's economy. The won depreciated sharply against the US dollar, reaching a low of 1,500 won per dollar in early 2009.
The Rise of the Won
After the global financial crisis, South Korea's economy began to recover. The won appreciated against the US dollar, reaching a high of 1,029 won per dollar in August 2011.
The Trump Effect
In 2016, Donald Trump was elected as President of the United States. His policies, including trade tariffs and a strong dollar, had a significant impact on the exchange rate. The won depreciated against the US dollar, reaching a low of 1,240 won per dollar in December 2018.
The Current Exchange Rate
As of August 2021, the exchange rate between the US dollar and the Korean won is approximately 1,180 won per dollar. The exchange rate has been relatively stable in recent years, with only minor fluctuations.
Factors Affecting the Exchange Rate
Several factors can affect the exchange rate between the US dollar and the Korean won. These include:
- Monetary policy
- Interest rates
- Inflation
- Political stability
- Trade policies
Conclusion
The exchange rate between the US dollar and the Korean won has a long and varied history. It has been affected by several economic and political factors over the years. However, in recent years, the exchange rate has been relatively stable. It will be interesting to see how it develops in the future.