이 누리집은 대한민국 공식 전자정부 누리집입니다.

한상넷

비즈니스 정보

Biz News Korea(Eng)

Real value of Korean won falls sharply after Trump victory: BIS data

Collected: 2016.12.17

Distributed: 2016.12.19

Source: Go Direct

The South Korean won last month became one of the biggest casualty cases from the strengthening in the U.S. dollar that has reached 14-year high after Donald J. Trump trumpeting America First agenda surprisingly won the U.S. presidential election.

According to data by the Bank of International Settlements (BIS) on Friday, the weighted average of the won against a basket of other major currencies weakened by the ninth biggest rate in November among 61 other key currencies. The real effective exchange rate (REER) of the Korean won stood at 110.44 points in November, down 1.22 percent from the previous month’s 111.81 points.

A reading above 100 means a country’s currency is overvalued while vice versa undervalued. A fall in index would mean depreciation in national currency with 2010 as the base year.

BIS data showed that the currency value of 27 economies including the Korean won depreciated in November while that of the remaining 34 economies appreciated. Currencies that showed steeper depreciation than the won include those of Turkey, Mexico, Columbia, Brazil, and Japan.

In general, a fall in REER index is evaluated positively as it means improved export competitiveness in terms of price. However, it also raises concerns over weakening in market confidence and signal capital outflow particularly in the case of Korea that is experiencing political and economic turmoil after the legislative passed a motion to impeach President Park Geun-hye amid power abuse scandal involving her close friend Choi Soon-sil.

By Chung Ui-hyun

Read in Korean

List

Previous: Shinsegae Department Store president makes her first public appearance in 20 years

Next: E-Mart shares rally on stellar performance of Traders