The 'strong dollar' brought by Trump..."Negative for trade and prices"

[Anchor]
The won-dollar exchange rate, which soared after former President Donald Trump won the presidential election, is expected to rise for the time being.

The exchange rate change brought by Trump is expected to have a negative impact on our current account and prices in the future.

Reporter Ryu Hwan-hong reports.

[Reporter]
With former President Donald Trump's election confirmed, the won-dollar exchange rate, which soared to 1,405 won, seems to have slowed down somewhat, but it remains high.

As the exchange rate remained high for two consecutive days, the government's alarm was also raised.

[Choi Sang-mok / Deputy Prime Minister for Economic Affairs: As uncertainties are expected due to the formation of a new government parliament and FOMC, the government will closely monitor market trends with special tension, while taking appropriate measures in accordance with the step-by-step response plan if market volatility excessively expands.]

The Bank of Korea is also worried that the current account surplus, which continued for five consecutive months until September, will stop.

Rising exchange rates directly affect import prices, which shakes current account surpluses and consumer prices.

[Shin Seung-cheol / Director of Economic Statistics, Bank of Korea: If the exchange rate goes up, there is a possibility that the current account surplus or trade balance will decrease as imports increase a little because it is a country that imports a lot of crude oil and raw materials....]

The market predicts that the strong dollar and the high exchange rate will be inevitable for the time being.

[Huh Jae-hwan / Eugene Investment & Securities Global Macro Team Leader (Senior Secretary): Since it reflects Trump's chances of winning the election, we believe that the won-dollar exchange rate will calm down from the late 1,300 won to the early 1,400 won range until the end of the year, rather than higher.]

Our stock market remained flat, with the KOSPI rising and the KOSDAQ falling.

Shipbuilding and defense stocks were strong on the news that Trump needed help from the South Korean shipbuilding industry in a phone call with President Yoon.

I'm YTN's Ryu Hwan Hong.