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Biden victory pushes Korean currency to 22-month high

November 9, 2020

 South Korea’s won currency surged to a 22-month high against the U.S. dollar on Monday, after the election of Joe Biden as the next U.S. president.

The won was quoted at 1,113.9 won per U.S. dollar at Monday’s closing, up 6.5 won from the previous session, touching its strongest level since Jan. 31, 2019.

It was the first time in some 22 months that the currency breached the key support level of 1,120 won to the greenback.

Analysts said the won is expected to further strengthen for the time being, as risks over U.S. politics receded.

Jeon Seung-ji, a currency analyst at Samsung Futures Inc., said the won is expected to show “upward rigidity for the time being” due to the fall of the U.S. dollar.

The U.S. dollar is likely to fall further, as the Biden administration is expected to draw up massive stimulus measures to prop up the pandemic-hit economy, Jeon said.

Baek Suk-hyun, an analyst at Shinhan Bank, said the Biden administration may take a friendlier trade policy toward China, propelling Asia’s trade-dependent currencies higher.

However, the won’s strength may be limited as new waves of coronavirus infections hit the United States and European nations, analysts said.