The won-dollar exchange rate closed above 1540 won for the first time since the global financial crisis 17 years ago. This is the result of a combination of a strong U.S. dollar and net selling by foreign investors.
Many of you may have been surprised while checking the news or economic sections of portal sites this morning. This is because headlines about the “Exchange rate breaking through 1540 won” have been appearing one after another.
Imagine this. The money leaving your wallet when you make overseas direct purchases or exchange dollars for your summer vacation has returned to the levels seen 17 years ago, back during the unstable days of the global financial crisis. What on earth is happening?
Why It Matters
The exchange rate is more than just the “cost of converting to foreign currency”; it is like a “thermometer” that shows the current state of our economy. When the exchange rate rises (depreciation of the won), the cost of imports becomes expensive. From the imported food ingredients we buy and the price of oil, to the production costs for companies that need to import various parts, everything is affected one after another.
This record is particularly heavy because of the timeframe: “17 years.” Reaching levels not seen since the 2009 global financial crisis is a significant signal that our economy is currently reacting that sensitively to the external environment.
The Explainer
It is easy to think of the exchange rate as a kind of “popularity contest.”
In simple terms, global investors right now want to buy more “dollar” votes. Metaphorically, on a day with heavy rain (an unstable economic situation), it is like seeing people lining up, racing to find the strongest and largest umbrella (the dollar, a safe asset).
When expectations arise that the U.S. Federal Reserve (the Fed) will maintain high interest rates, investors want to hold dollars, which pay higher interest. On the other hand, how is the Korean stock market doing? Foreign investors have sold off approximately 11 trillion won worth of stocks over the past four days. As foreigners sell stocks and try to convert the proceeds into dollars to take them back home, the number of people looking for dollars in the market increases, and as the won becomes more common, the value of the dollar skyrockets.
Where We Stand
On June 24, 2026, the won-dollar exchange rate in the Seoul foreign exchange market recorded 1541.8 won based on the closing price.
In fact, the exchange rate started relatively calmly at 1534.9 won that day. However, it turned upward during the trading session, rising to 1542.9 won during the day, and expanding its gains to the 1547 won level in the overnight session after sunset. It closed above 1540 won for the first time in 17 years based on the closing price. The dominance of the U.S. dollar and the net selling of foreign stocks in the domestic stock market are combining to fuel the rise in the exchange rate.
What’s Next
No one can say for sure how much further the exchange rate will rise. This is because U.S. interest rate policy and investor sentiment in the global market are the biggest variables. Experts are wary of the fact that concerns over the U.S. Fed’s tightening stance (a policy of draining money from the market) remain. For the time being, it seems we will need to observe the market flow calmly.
MindTickleBytes AI Reporter’s View
A high exchange rate can mean that our economy’s energy is leaking outward. However, we must also remember that the fundamental strength of our economy today is different from that during past financial crises. It is a time when we need to calmly grasp the flow of the economy rather than feeling fear toward the number itself.
References
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[Exchange rate, 1540 won range based on closing price… First time since financial crisis Hankyung](https://www.hankyung.com/article/2026062461371) -
[Exchange rate closes in 1540 won range… Highest since financial crisis Chosun Ilbo](https://www.chosun.com/economy/stock-finance/2026/06/24/AV7LGOD3V5HMXHUC5OTDDEP4DQ/) - Exchange rate closes in 1540 won range… Highest since financial crisis - MSN
- Won-dollar exchange rate closes in 1540 won range… 17 years after financial crisis - Kyunghyang Shinmun
- Exchange rate closes at 1540 won… First time since financial crisis - SBS
- “The number I saw during the financial crisis”… Exchange rate breaks 1540 won, highest in 17 years - Energy Economic News
- Exchange rate breached 1540 won… Lowest won value in 17 years since financial crisis - Newdaily
- 10 years
- 17 years
- 20 years
- Expectations for interest rate hikes by the U.S. Federal Reserve
- Net selling of domestic stocks by foreign investors
- A surge in exports by domestic companies
- 1541.8 won
- 1542.9 won
- 1547 won