Until May, the won-dollar exchange rate has continuously been reaching new peaks. According to the April analysis of Herald Business, the Korean won is one of the four currencies among the Group of 20 (G20), which suffered depreciation after the Silicon Valley Bank Collapse. Experts have expressed concerns regarding the phenomenon, as the won currency shows a downtrend even though the dollar index — the average value of the United States (U.S.) dollar relative to six major foreign currencies — kept decreasing. The key factor in the phenomenon lies in the weakened economic fundamentals of Korea regarding export. Specifically, the balance of the trade deficit has lasted for 13 months due to the declining export of semiconductors. In addition, the Federal Open Market Committee (FOMC)’s base rate hike in May has also burdened the domestic market. However, the Monetary Policy Board has frozen the base rate to 3.5% for two consecutive months, expanding the interest rate gap between U.S. and Korea. Lastly, domestic corporates’ dividend payments might also affect the won-dollar rate. As most of the dividends are paid in April, the foreigners’ soaring demand of exchange for dollars may have triggered an increase in the exchange rate. However, an optimistic outlook expecting the rate’s decline has emerged. In an interview with The Asia Business Daily, Kim Chan-hee, a researcher at Shinhan Securities Co., said, “The won-dollar rate would be normalized from the second quarter, as the gap between the dollar index and exchange rate diminishes. It is predicted to fluctuate around \1,300 in the near future.”