The won-dollar exchange rate has risen above 1510 won again.
As of 10:13 a.m. on June 2, the exchange rate in the Seoul foreign exchange market was 1511.3 won per dollar. The rate opened at 1512.0 won, up 7.7 won from the previous session.
This increase is attributed to a surge in international oil prices following reports that the United States and Iran have halted peace negotiations. Overnight, Brent crude oil futures for August delivery rose 4.2% to $94.98 per barrel. Meanwhile, West Texas Intermediate (WTI) crude for July delivery closed at $92.16 per barrel, up 5.5%.
Israel's attacks on Lebanon have emerged as a variable in the peace negotiations. Iranian news agency Tasnim reported that Iran's negotiating team has suspended message exchanges with the U.S. regarding a peace agreement in protest of Israel's actions in Lebanon.
Strong economic data from the U.S. has also contributed to the dollar's strength. The U.S. manufacturing Purchasing Managers' Index (PMI) for May rose 1.3 points to 54.0, exceeding Dow Jones' forecast of 53.2, marking five consecutive months of expansion.
Min Kyung-won, an economist at Woori Bank, stated, "Today, upward pressure is expected to dominate, but as selling pressure from profit-taking emerges later in the session, we anticipate a reduction in the extent of the increase."
He added, "The rise in international oil prices has driven the dollar's strength, and with the ISM manufacturing index surpassing expectations, concerns about supply chain disruptions and inflation remain prevalent, supporting the dollar's strength."
* This article has been translated by AI.
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