The won-dollar exchange rate opened higher amid a global strong dollar trend.
As of 9:18 a.m. on May 15 in the Seoul foreign exchange market, the exchange rate for the Korean won against the U.S. dollar was 1,496.4 won. The rate opened at 1,494.2 won, up 3.2 won from the previous session.
The New York stock market closed higher overnight, buoyed by a rally in technology stocks, while international oil prices remained stable. The sharp decline of the British pound appears to have triggered the dollar's strength.
On Wall Street, the Dow Jones Industrial Average rose by 370.26 points (0.75%) to close at 50,063.46. The S&P 500 index increased by 56.99 points (0.77%) to finish at 7,501.24, and the Nasdaq Composite rose by 232.88 points (0.88%) to close at 26,635.22.
International oil prices showed slight gains. The price of Brent crude for July delivery closed at $105.72 per barrel, up 0.1% from the previous session at the ICE Futures Exchange. Meanwhile, West Texas Intermediate (WTI) crude for June delivery settled at $101.70 per barrel, a 0.2% increase.
The British pound fell sharply amid calls for Prime Minister Keir Starmer's resignation and speculation about increased fiscal spending under a left-leaning leadership.
In the domestic stock market, foreign investors sold a net 977 billion won.
Min Kyung-won, an economist at Woori Bank, stated, "Despite the technology stock rally, we expect upward pressure on the strong dollar due to the pound's decline. The growing political uncertainty in the UK is leading to a drop in the pound against the dollar, contributing to a global strong dollar atmosphere."
He added, "The U.S. long-term interest rates, which have rebounded to nearly 4.5%, could also exacerbate the weakness of major reserve currencies and increase valuation pressures on emerging market stocks, likely accelerating the outflow of foreign capital."
* This article has been translated by AI.
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