Korean Won To Us Dollar Exchange Rate History
The Korean won is the official currency of South Korea. It has been in circulation since 1902 and has undergone several transformations. The won is subdivided into 100 jeon or 1000 won. The US dollar is the most traded currency in the world and is used as a benchmark currency for many countries. The exchange rate between the Korean won and the US dollar has been fluctuating over the years due to various economic and political factors.
Early History
When South Korea was liberated from Japanese occupation in 1945, the Korean won was established as the official currency. Its value was initially set at 15 won to one US dollar. In 1949, the won was revalued at a rate of 100 to 1, due to inflation and economic difficulties. However, this did not last long as further instability led to more devaluations.
1960s and 1970s
In the 1960s and 1970s, South Korea was undergoing rapid economic development. The government implemented policies to stabilize the economy and the won was pegged to the US dollar at a rate of 125 won to one US dollar. This rate remained stable until the early 1980s.
1980s and 1990s
In the 1980s and 1990s, South Korea continued to experience economic growth, but also faced financial crises. In 1983, the won was devalued by 10% against the US dollar. In 1986, the won was allowed to float against the US dollar, leading to further volatility in the exchange rate. In the early 1990s, the won was pegged to a basket of currencies, but this was abandoned in 1997 during the Asian financial crisis.
2000s
In the 2000s, the won continued to fluctuate against the US dollar. In 2007, the won reached its highest value against the US dollar in over a decade, with an exchange rate of 933.80 won to one US dollar. However, the global financial crisis in 2008 led to a sharp drop in the value of the won, with an exchange rate of over 1600 won to one US dollar in 2009.
2010s
In the 2010s, the won has remained relatively stable against the US dollar, with the exchange rate hovering around 1100 to 1200 won to one US dollar. However, there have been periods of volatility, such as in 2013 when tensions with North Korea led to a drop in the value of the won.
Conclusion
The exchange rate between the Korean won and the US dollar has been influenced by a variety of factors over the years, including economic growth, financial crises, and political tensions. Despite these fluctuations, the won has remained a strong and stable currency in the global market.