[Kwangsoo's Take] In a Won-Strengthening Phase, Buying the Dollar Itself as an Investment Asset Is Meaningless
Host Lee Kwang-soo shared his view on whether buying dollars is a rational investment amid the recent won strength that has pushed the exchange rate down to the low 1,300s. He noted that while it is true the current exchange rate level is low, it is uncertain whether the rate will rise again in one to two years or three years, and if returning to a past peak level yields only around 20%, it is questionable whether that is an attractive return relative to the time horizon involved.
He distinguished between buying the dollar itself as an investment asset and investing in dollar-denominated assets such as U.S. stocks and bonds, calling them entirely different matters. When converting to dollars to invest in U.S. assets, two functions—currency gains and asset price appreciation—operate simultaneously, which he said requires a far more complex calculation than a simple currency bet.
In conclusion, he stated that holding dollars purely for investment purposes should be avoided, and that it is only rational to hold dollars when there is an actual purpose for use, such as study-abroad funds, and to do so when the exchange rate is low in order to reduce volatility. Citing the yen as an example, he also pointed out that the yen is merely a currency that bears no interest and offers no real benefit as an investment asset.