The Korean Won remained relatively stable during the April 30th and May 1st holiday period.

Today's Won exchange rate April 29, 2024 in the domestic market

According to a survey by the Industry and Trade Newspaper, during the April 30th - May 1st holiday period, there appeared to be little fluctuation in foreign exchange rates. As of 9:30 AM on April 29th, 2024, the Won exchange rate at banks remained relatively stable.

Tỷ giá ngoại tệ hôm nay 29/4/2024 tại ngân hàng Vietcombank.

Foreign exchange rates today, April 29, 2024, at Vietcombank . (Screenshot taken at 9:30 AM)

At Vietcombank, the buying and selling rates for the Korean Won are 15.92 VND/KRW and 19.31 VND/KRW, respectively. At VietinBank , the buying and selling rates for the Korean Won are 16.14 VND/KRW and 20.14 VND/KRW, respectively.

Comparing the Korean Won (KRW) exchange rates among the 7 largest banks in Vietnam. Today, April 29, 2024, the buying rate for KRW shows that 0 banks increased their buying price, 1 bank decreased its buying price, and 6 banks maintained the same buying price compared to yesterday.

Meanwhile, on the selling side, 0 banks increased their selling prices, 1 bank decreased its selling price, and 6 banks maintained the same selling price compared to yesterday.

Today, April 29, 2024, Tien Phong Bank is buying South Korean Won (KRW) at the highest price of 17.52 VND/KRW. Tien Phong Bank is selling South Korean Won at the lowest price of 19.05 VND/KRW.

Tỷ giá Won hôm nay 29/4/2024 khảo sát tại một số ngân hàng.

Today's Won exchange rate (April 29, 2024) surveyed at several banks. (Screenshot taken at 9:30 AM)

Black market Won exchange rate

Today, April 29, 2024, a survey of the black market at 9:30 AM showed that the Won exchange rate decreased, with the buying rate for KRW at 18.16 VND/KRW and the selling rate at 18 VND/KRW.

Tỷ giá Won tại chợ giá hôm nay 29/4/2024.

The Won exchange rate at the market today, April 29, 2024. (Screenshot taken at 9:30 AM)

In Hanoi , Ha Trung Street (Hoan Kiem District) is the largest foreign exchange hub, offering the exchange of many popular currencies such as USD (US Dollar), Euro, Yen (Japanese Yen), Won (South Korean Won), and many others. However, currency exchange at these foreign exchange streets must comply with Vietnamese law.

How has the South Korean Won fluctuated?

The South Korean Won has been weakening recently, primarily due to expectations that the US Federal Reserve (FED) will delay cutting US interest rates. In addition, the volatility of other major Asian currencies such as the Japanese Yen and the Chinese Yuan is also contributing to increased pressure on the Won.

At the beginning of the year, Asian policymakers believed that a series of US interest rate cuts would ease tensions over interest rate differentials. However, consistently higher-than-expected inflation data for the first three months of the year and the resilient US economy put an end to those expectations.

The traditional relationship between the South Korean Won and export growth and capital flows has recently broken down. Typically, export growth would lead to an appreciation of the Won. However, recently, despite South Korea's exports increasing by nearly 10% annually, the Won has continued to depreciate against the USD. Furthermore, the relationships between interest rates and exchange rates, and foreign investment and exchange rates, have also become strained.

Reasons explaining the inexplicable decline of the Won.

Increased policy uncertainty: Since 2007, the global economy has faced increasing crises and instability. Events such as the global financial crisis (2007-2009), the European sovereign debt crisis (2011-2012), the US-China trade war (2018-2019), and the COVID-19 pandemic have all contributed to this instability. Policy uncertainty has led to increased demand for safe-haven currencies (such as the USD), and conversely, for riskier currencies like the South Korean Won.

In addition, yield differentials between regions also influence exchange rates: The US economy is experiencing superior growth compared to other developed countries, and the Federal Reserve (Fed) is more aggressive in raising interest rates than other major central banks. This results in significantly higher yields on US Treasury bonds, causing the South Korean Won to weaken against the USD.

The South Korean Won is particularly sensitive to instability: South Korean businesses primarily operate on a B2B (business-to-business) model, so instability will affect export growth and the entire economy. This could significantly impact the exchange rate recently. Overall, the short-term outlook for the South Korean Won remains volatile and dependent on many factors.

Investors and businesses need to closely monitor global economic and geopolitical developments in order to accurately assess the risks and opportunities associated with the Won.

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