Korean won hits 21-month high after Biden win

A currency trader walks near the screens showing the Korea Composite Stock Price Index, left, and the foreign exchange rate between U.S. dollar and Korean won at the foreign exchange dealing room in Seoul, Monday, Nov. 9, 2020. AP

South Korea's won currency surged to a 21-month high against the U.S. dollar on Monday after the election of Joe Biden as the next U.S. president.

The won was quoted at 1,120.0 won per U.S. dollar at Monday's opening, up 0.4 won from the previous session. At one point, the won was at 1,119.3 won to the dollar, its highest level since February 2019.

It was the first time in 21 months that the currency breached the key support level of 1,120 won to the greenback.

Analysts said the won is expected to further strengthen for the time being, as uncertainty over the U.S. presidential election eased.

Jeon Seung-ji, a currency analyst at Samsung Futures Inc., said the won is expected to show "upward rigidity for the time being" due to the fall of the U.S. dollar.

The U.S. dollar is likely to fall further as the Biden administration is expected to draw up massive stimulus measures to prop up the pandemic-hit economy, Jeon said.

However, the won's strength may be limited as new waves of coronavirus infections hit the United States and European nations, analysts said. (Yonhap)