Conversion of the Korean won
The relationship with the British Pound: The British Pound (GBP) and the Won historically do not have the same kind of relationship as some other major currencies, yet the UK is a major trading partner for South Korea. Exchange rate movements between GBP and KRW are often influenced by macroeconomic developments and trade relations.
The relationship with the Swiss franc: The Swiss franc (CHF) is considered one of the most stable currencies in the world and often attracts capital in uncertain times. While the won is strongly influenced by developments in the Asia-Pacific region, the franc is more influenced by the European financial markets. Direct trading between these two currencies is less common than with other major currencies, but economic and geopolitical developments influence the relationship between the KRW and CHF.
Interaction with the euro: The eurozone is an important trading partner for South Korea. The euro (EUR) and the won therefore have a close economic relationship. Exports and imports of goods and services as well as investments influence the exchange rate movements between these two important currencies.
Relationship with the US dollar: The US dollar (USD) dominates the international monetary system, and the relationship between the dollar and the won is of particular importance. As South Korea is a major trading partner of the US, bilateral trade relations, interest rates and geopolitical developments in the region have a significant impact on the KRW-USD exchange rate.
Other major currencies: Aside from the currencies mentioned above, the won also has significant relationships with other Asian currencies such as the Japanese yen, Chinese yuan and Singapore dollar. Economic ties in the region, combined with geopolitical developments, often influence exchange rate dynamics.
The South Korean won is an important player in the Asia-Pacific currency area. Its exchange rate movements against other major currencies reflect economic and geopolitical developments in the region and globally. The importance of the won is likely to grow in the future as South Korea continues to expand its role as a global economic leader.