Geopolitical Concerns in the Middle East Intensify... Won-Dollar Exchange Rate Closes at 1,493.7 Won (Update)

Above 1,490 Won on Weekly Closing Again After Four Trading Days

The won-dollar exchange rate once again closed above the 1,490 won mark. This was driven by a sharp surge in international oil prices, the strengthening of the global dollar, and foreign investors’ net selling in the domestic stock market.

On the 13th, employees are monitoring the stock market and exchange rates in the dealing room at the Hana Bank headquarters in Seoul.

On the Seoul foreign exchange market on the 13th, the won-dollar exchange rate ended weekly trading (as of 3:30 p.m.) at 1,493.7 won, up 12.5 won from the previous trading day. The exchange rate opened at 1,490.6 won, up 9.4 won from the previous session, and initially hovered in the high 1,480 won range in early trading, narrowing its rise to around 1,485 won during the morning session. However, as the session progressed, the exchange rate increased again, climbing to the 1,493 won level just before the market closed.

Previously, on the 9th, the exchange rate had closed weekly trading at 1,495.5 won—the highest since the financial crisis—after international oil prices surpassed 100 dollars per barrel. Just four trading days later, the weekly closing price once again exceeded the 1,490 won mark. This is attributed to a renewed surge in international oil prices, triggered by escalating geopolitical tensions in the Middle East surrounding the Strait of Hormuz. Iran's new Supreme Leader, Seyyed Mojtaba Khamenei, declared a hardline stance, announcing the closure of the Strait of Hormuz and a widening of the front lines, which pushed international oil prices above 100 dollars per barrel.

With risk aversion intensifying, the dollar has strengthened. The dollar index, which measures the value of the U.S. dollar against the currencies of six major countries, rose to 99.862. After moving up into the 99 range the previous day, it continued to climb and fluctuated in the upper 99 range on this day.

Uncertainty ahead of the weekend, compounded by rising geopolitical concerns in the Middle East, also led to net selling of domestic stocks by foreign investors, contributing to the rise in the exchange rate. On this day, foreign investors recorded a net selling of approximately 1.47 trillion won on the Korea Exchange. The KOSPI closed at 5,487.24, down 96.01 points (1.72%).

This content was produced with the assistance of AI translation services.