It's Too Soon to Feel Secure... Exchange Rate Returns to 1,470 Won Amid Middle East Military Clashes and Foreign Sell-Offs (Update)

by Kim Hye Min

Published 08 May.2026 16:23(KST)

Weekly Trading Closes at 1,471.1 Won, Up 17.7 Won

With the resumption of military clashes between the United States and Iran, geopolitical risks from the Middle East have resurfaced, pushing the won/dollar exchange rate back into the 1,470 won range. The large-scale sell-off of Korean stocks by foreign investors also contributed to this trend.

As doubts arose over the conclusion of ceasefire negotiations in the Middle East war, all three major U.S. stock indices fell simultaneously, while the won/dollar exchange rate started higher. On May 8, 2026, an employee is monitoring the stock market and exchange rates in the dealing room at the Seoul Jung-gu Hana Bank headquarters. Photo by Jo Yongjun

As doubts arose over the conclusion of ceasefire negotiations in the Middle East war, all three major U.S. stock indices fell simultaneously, while the won/dollar exchange rate started higher. On May 8, 2026, an employee is monitoring the stock market and exchange rates in the dealing room at the Seoul Jung-gu Hana Bank headquarters. Photo by Jo Yongjun

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On May 8, in the Seoul foreign exchange market, the won/dollar exchange rate ended weekly trading at 1,471.1 won, up 17.7 won from the previous session. This is the first time in four trading days that the weekly closing price has exceeded 1,470 won, with the last occurrence being on April 30, when it closed at 1,483.3 won.


Based on weekly closing prices, the won/dollar exchange rate had appeared to be stabilizing downward, recording 1,462.8 won on the 4th, 1,455.1 won on the 6th, and 1,454.0 won on the 7th.


However, on this day, the exchange rate opened at 1,458.5 won, up 4.5 won from the previous session, and quickly expanded its gains early in the session. This was influenced by overnight U.S. airstrikes on parts of Iran and Iran's strong condemnation of the attack as a violation of the ceasefire agreement, which heightened tensions in the Middle East.


As a result, the previously optimistic outlook for the reopening of the Strait of Hormuz shifted to a risk-averse sentiment in the market, and investor confidence was rapidly dampened. Foreign investors conducted large net sales in the domestic stock market, pushing the won/dollar exchange rate higher. On this day, foreigners were net sellers of 6.2572 trillion won in the main stock market. Individuals and institutions also recorded net sales of 4.786 trillion won and 1.3052 trillion won, respectively.



The dollar index (DXY), which measures the value of the dollar against the currencies of six major countries, stood at 98.088, down 0.153 from the previous day.