SEOUL, KOREA - Woori Investment & Securities said on May 16 that it is highly unlikely the won-dollar exchange rate would break the 1,0000-won-per-dollar level despite the recent strength of the won value against the dollar. On the 15th, the currency rate closed at 1,025.30 won, down 0.25 percent (2.60 won) from the previous day. It was largely because of the news that the current account surplus was at a record-high level, as well as the U.S. dollar's relative strength vis-a-vis the euro.

 

Lee Ji-hyung, Woori Investment & Securities analyst, said, "The dollar may regain strength in the second half of the year, as the U.S. Fed is reducing its monthly bond purchases while the European Central Bank is moving to announce monetary easing policy measures from next month including rate cuts."

 

"The current account surplus for the whole year would shrink due to a rise in imports in the latter half of the year. In addition, the correlation between current account surplus and exchange rate has become much lower than before, making it possible to predict the won appreciation trend would be quite limited," he added.