[Economy pick] "A year of 1,420 won" forecast..."King Dollar" Tsunami starts?

[Anchor]
1,420 won by the end of this year, the 'King Dollar' tsunami begins?

How will the Trump era affect our economy?

Attention is being paid, but the exchange rate is not unusual.

[Reporter]
That's right.

At the same time as the news of the election, there was a shock wave in the foreign exchange market.

In our view, the won-dollar exchange rate soared to 1,405 won last night, but it is the first time in seven months that it has exceeded 1,400 won since April.

Today, it exceeded 1,400 won at the beginning of the market and has slowed down a little since then, going back and forth to the 1,390 won range.

The dollar index, which represents the value of the dollar against the six major currencies as well as ours, also topped 105 for the first time since July, the highest in more than four months.

[Anchor]
The exchange rate has been fluctuating since the first day of election, and there is a prospect that the exchange rate will soar higher in the future, right?

[Reporter]
Yes, there was a caption earlier that said 1,420 won within the year, but there is also a prospect that it could be 1,450 won after that.

This is because Trump's signature policies are large-scale tax cuts and tariff increases.

It is a policy that lowers corporate and income taxes as much as possible to protect domestic companies, but supplements insufficient tax revenues by raising tariffs and protects domestic companies at the same time.

Above all, we need more than 1 Gyeong of our money to achieve all of Trump's promises, and if the tax revenue decreases like this, the issuance of government bonds will inevitably increase, and the interest rate on government bonds will have to be raised in order to sell the issued government bonds well.

Eventually, you have dollar shortages, let's listen to the experts who are involved.

[Heo Jae-hwan / Eugene Investment & Securities Global Macro: In particular, fiscal policies such as tax cuts are likely to cause the U.S. economy to overheat a little bit, which could lead to higher U.S. interest rates, and tariffs could worsen some export competitiveness of neighboring countries.]

[Anchor]
Yes, and the stock market is also affected, and the flow varies considerably depending on the so-called theme stocks, right?

[Reporter]
That's right. This is also a reaction directly related to Trump's policy, and first of all, the stock prices of Korea's three battery companies have fallen significantly.

Shares of LG Ensol, SK Innovation, the parent company of SK On, and Samsung SDI plunged by more than 7 percent from 4 percent yesterday, and fell by 1 to 3 percent again today.

This is due to the prospect that Trump will completely reverse the Biden administration's eco-friendly policies and shift the paradigm to energy with fossil fuels, including nuclear power plants, and this trend is expected to continue to affect stock prices in the future.

Shipbuilding stocks, on the other hand, were strong on the news that Trump said on the phone with President Yoon, "Korea shipbuilding cooperation is necessary."

In addition, defense companies' shares rose sharply on expectations that Trump's "America First" policy would increase demand for weapons as countries' self-defense needs grew.

At the same time, virtual assets have also met water, and during the presidential election, Trump suddenly called himself the president of virtual assets and emphasized the importance of virtual assets, and Bitcoin shot 76,000 dollars and 106 million won today, far beyond the peak in March.

Of course, Musk's virtual asset Dogecoin also jumped 22% in a week.