The won-dollar exchange rate has climbed into the 1480s as geopolitical risks in the Middle East and rising international oil prices continue to bolster the strength of the dollar.
As of 9 a.m. on July 22, the exchange rate stood at 1481.0 won against the U.S. dollar, according to the Seoul foreign exchange market.
The rate opened at 1482.0 won, an increase of 8.6 won from the previous day's closing price as of 6 a.m.
With geopolitical tensions in the Middle East showing little sign of easing, U.S. President Donald Trump has dismissed the possibility of immediate negotiations with Iran, raising concerns over logistical disruptions and oil supply instability. This has contributed to a continued rise in international oil prices, further supporting the dollar's strength.
On July 21, Brent crude futures for September delivery closed at $91.01 per barrel, up 2.01% from the previous session at the Intercontinental Exchange in London. Meanwhile, West Texas Intermediate crude futures for August delivery also rose by 2.02%, closing at $84.91 on the New York Mercantile Exchange.
Analysts suggest that an influx of offshore buying following the dollar's strength could exert greater downward pressure on the won, which is sensitive to external conditions. Although expectations for increased dollar supply from exporters and expanded currency hedging by heavy industry have grown, the ongoing geopolitical tensions and rising oil prices may limit any significant downward trend in the exchange rate.
Min Kyung-won, an economist at Woori Bank, stated, "Expectations for increased dollar supply and concerns over intervention by Japanese authorities are factors that may cap the upper limit of the exchange rate. The recent hedging activities by exporters and heavy industry have contributed to lowering the exchange rate, and with relatively clear signals for increased dollar supply, the burden of a weaker won is unlikely to become excessive."
As of 9 a.m. on July 22, the exchange rate stood at 1481.0 won against the U.S. dollar, according to the Seoul foreign exchange market.
The rate opened at 1482.0 won, an increase of 8.6 won from the previous day's closing price as of 6 a.m.
With geopolitical tensions in the Middle East showing little sign of easing, U.S. President Donald Trump has dismissed the possibility of immediate negotiations with Iran, raising concerns over logistical disruptions and oil supply instability. This has contributed to a continued rise in international oil prices, further supporting the dollar's strength.
On July 21, Brent crude futures for September delivery closed at $91.01 per barrel, up 2.01% from the previous session at the Intercontinental Exchange in London. Meanwhile, West Texas Intermediate crude futures for August delivery also rose by 2.02%, closing at $84.91 on the New York Mercantile Exchange.
Analysts suggest that an influx of offshore buying following the dollar's strength could exert greater downward pressure on the won, which is sensitive to external conditions. Although expectations for increased dollar supply from exporters and expanded currency hedging by heavy industry have grown, the ongoing geopolitical tensions and rising oil prices may limit any significant downward trend in the exchange rate.
Min Kyung-won, an economist at Woori Bank, stated, "Expectations for increased dollar supply and concerns over intervention by Japanese authorities are factors that may cap the upper limit of the exchange rate. The recent hedging activities by exporters and heavy industry have contributed to lowering the exchange rate, and with relatively clear signals for increased dollar supply, the burden of a weaker won is unlikely to become excessive."
* This article has been translated by AI.
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