The won-dollar exchange rate is fluctuating around 1,470 won.
As of 9:30 a.m. on July 24 in the Seoul foreign exchange market, the exchange rate stands at 1,471.7 won per U.S. dollar. The rate opened at 1,475.5 won, up 8.7 won from the previous session as of 6 a.m.
The rate had dropped to 1,461.5 won the previous day but rose again during overnight trading. This increase is attributed to heightened tensions in the Middle East, which have led to rising international oil prices and a stronger dollar index.
With navigation through the Strait of Hormuz effectively halted, concerns are growing that the Bab al-Mandab Strait could also be blocked, contributing to the rise in international oil prices.
September futures for Brent crude surged 7.04% to close at $100.69 per barrel, while September futures for West Texas Intermediate (WTI) rose 6.17% to $92.19 per barrel.
U.S. stock markets fell overnight. The Dow Jones Industrial Average closed down 506.93 points (0.97%) at 51,711.65.
The Standard & Poor's 500 index dropped 90.66 points (1.21%) to finish at 7,408.30, and the Nasdaq Composite fell 553.21 points (2.15%) to close at 25,137.69.
The dollar index, which measures the value of the dollar against six major currencies, rose 0.312% to 101.437.
The exchange rate is expected to rise today due to the strength of the dollar. Min Kyung-won, an economist at Woori Bank, stated, "Today, the won-dollar exchange rate is expected to rise as it absorbs the global preference for a strong dollar triggered by rising international oil prices."
He added, "As military tensions in the Middle East escalate, we are seeing a resurgence of the trio of rising international oil prices, increasing U.S. Treasury yields, and a strong dollar, which has been frequently observed in the first half of the year. The simultaneous decline of major indices is also increasing the burden of weakness on the risk-sensitive won."
* This article has been translated by AI.
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