The exchange rate of the Korean Won against the US Dollar has surpassed 1481 won... approaching the end of the year, reaching a new high in 8 months.

The USD-KRW Exchange Rate continues to rise in a subdued trading atmosphere on the eve of the year's end, closing above the 1480 KRW mark in the New York forex market for the first time since last July.

As of 2:00 AM Korean time on December 23, the New York market's USD-KRW Exchange Rate rose by 4.70 KRW compared to the previous day's closing price in the Seoul forex market, closing at 1481.00 KRW. This is 0.90 KRW higher than the closing price of 1480.10 KRW in the regular Seoul market on the same day, marking the highest closing price since April 9 of this year. Analysts believe that as trading volumes thin out entering the year-end holidays, buying pressure at low points in the exchange rate has led to the upward momentum.

At almost the same time, Japan's forex authorities intervened in the market, causing the USD-JPY exchange rate to drop below the 157 yen level, but further declines were limited. Despite Japan's verbal intervention (i.e., statements without actual monetary involvement), the USD-JPY exchange rate did not decline rapidly, reflecting investors' risk-averse mentality. As a result, the KRW exchange rate also did not show a significant reversal, maintaining a weak tone.

Market experts are skeptical about the effectiveness of current foreign exchange authorities' interventions. Derek Halpenny, head of global market research at Japan's MUFG, pointed out in a recent outlook that if governments intervene in the forex market without issuing clear fiscal policy signals, it will be difficult to have a significant effect on stabilizing the exchange rate. This leads the market to interpret that the current exchange rate instability is more dependent on the credibility of medium- to long-term policies rather than short-term supply and demand.

On that day, the exchange rate of USD-KRW fluctuated between 1476.00 KRW and 1481.90 KRW, with a daily amplitude of 5.90 KRW. The total spot trading volume through Seoul forex brokerage firms and Korean fund intermediaries was 7.495 billion USD, higher than the 6.209 billion USD recorded on the 19th of this month. However, overall, due to the prevailing cautious sentiment in the market ahead of the year-end, trading itself continued to show a subdued trend.

This trend is likely to continue until the end of the year. Against the backdrop of ongoing global political and economic uncertainty, domestic and foreign investors are expected to maintain a more cautious position adjustment compared to previous years. Especially considering external variables such as changes in U.S. monetary policy, Japan's forex market response, and the trend of the RMB, the USD-KRW exchange rate may also exhibit narrow fluctuations in a range of ups and downs in the short term.