In a significant development for South Korea's financial landscape, Bank of Korea Governor Rhee Chang-yong has expressed skepticism over the possibility of the dollar-won exchange rate reverting to previous levels. In remarks made during a meeting with lawmakers, Rhee emphasized that the foreign exchange market is currently in a wait-and-see phase, reflecting growing uncertainty amid ongoing political challenges.

As of 0520 GMT, the South Korean won was trading at 1,427.8 per dollar, a slight improvement from a recent close of 1,435.0. However, it reached a troubling two-year low of 1,442.0 just last week, indicating volatility attributed to both international economic factors and domestic political events.

Analysts point out that the fluctuation of the won may be influenced by a multitude of factors, including global economic conditions, changes in U.S. monetary policy, and geopolitical tensions in the region. With South Korea's economy heavily reliant on exports, a weaker won could have mixed implications—providing a competitive edge for exporters while raising import costs for domestic consumers.

In light of these challenges, Rhee urged lawmakers to consider measures to stabilize the economy and further strengthen market resilience. As South Korea navigates through these turbulent times, the financial community is keenly watching how the dollar-won dynamics unfold in the coming weeks. Investors and stakeholders may need to brace themselves for continued fluctuations as uncertainty looms over both domestic and global fronts.