Renewed military tensions between the United States and Iran pushed the won-dollar exchange rate back into the 1,480-won range in early trading.
As of 9:12 a.m. on April 24, the won was trading at 1,482.9 per U.S. dollar in Seoul. The rate opened at 1,483.0, up 2.0 won from the previous session.
With talks on ending the war failing, rising tensions between the two countries were seen boosting demand for safe-haven assets.
Overnight, all three major U.S. stock indexes fell in New York. The Dow Jones Industrial Average closed down 179.71 points, or 0.36%, at 49,310.32.
The S&P 500 ended down 29.50 points, or 0.41%, at 7,108.40, and the Nasdaq composite fell 219.06 points, or 0.89%, to 24,438.50.
International oil prices also extended sharp gains. Brent crude futures for June delivery settled at $105.07 a barrel, up 3.1% from the previous session. U.S. West Texas Intermediate for June delivery closed at $95.85 a barrel, up 3.11%.
U.S. President Donald Trump ordered forces to fire on and sink any vessel laying mines in the Strait of Hormuz. He also reiterated that the United States would continue its blockade of the strait until Iran reaches agreements related to ending the war and denuclearization.
Iran, however, said it would not take part in negotiations as long as the U.S. maritime blockade continues, and said it is ready to respond to further threats. Investor sentiment was also affected by reports of hostile aerial activity in Tehran and the activation of air defenses, the first such report since the ceasefire with the United States.
At the same time, foreign investors were net sellers of 154.4 billion won worth of shares on the benchmark KOSPI.
Min Kyeong-won, an economist at Woori Bank, said the exchange rate is expected to move around the low-to-mid 1,480s amid a stronger dollar driven by higher oil prices and risk-off sentiment. She added that continued foreign selling in local stocks is likely to spur dollar demand and keep downward pressure on the exchange rate limited.
* This article has been translated by AI.
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