Won Value Falls 8% After the Middle East War

Since the outbreak of the Middle East war, the won has fallen sharply in value, emerging as the weakest among major Asian currencies. As of the 5th, the wondollar exchange rate stood at 1,539.1 won, up 8.0% from February 27, just before the war. Over the same period, the Indonesian rupiah weakened by 7.6% against the dollar, meaning the won fell by a larger margin. According to the article, the won was analyzed as having been affected by several factors, including foreign investors' stock selling, a strong dollar, and speculative trading in offshore markets. The government believes the exchange rate could stabilize again based on a current account surplus at a recordhigh level, but experts pointed out that structural factors such as concerns over slowing domestic growth, the money supply, and the investment structure should also be examined.