Won-Dollar Exchange Rate Hits 17-Year High—The Paradox of 'A Weak Won Amid Export Boom'

Won-Dollar Exchange Rate Hits 17-Year High—The Paradox of 'A Weak Won Amid Export Boom' Entering June 2026, the won-dollar exchange rate soared to its highest level in 17 years. During the same period, South Korea's monthly exports broke historical records. Typically, robust exports act as a factor supporting currency value by increasing the inflow of dollars, but this time, the exact opposite picture emerged. This paradoxical phase, where record-breaking exports and a weak won unfold simultaneously, clearly highlights the gap between the foreign exchange market and real economic indicators. This phase has reaffirmed that exchange rates are not determined by the trade balance alone, but are driven by a complex interplay of capital movements, the inherent strength of the dollar, and geopolitical risks. The coexistence of strong external indicators and weak currency value vividly encapsula…