The won-dollar exchange rate is on the rise as tensions between the United States and Iran escalate.
In the Seoul foreign exchange market, the exchange rate for the won against the U.S. dollar reached 1508.6 won. The rate opened at 1509.5 won, up 3.4 won from the previous day's closing price as of 6 a.m.
The ongoing tensions between the U.S. and Iran are believed to be impacting investor sentiment. The U.S. has conducted airstrikes against Iran, while Iran has retaliated by attacking U.S. military bases.
Meanwhile, international oil prices have declined. September futures for Brent crude fell by 2.20% to $76.30 per barrel. August futures for West Texas Intermediate (WTI) crude dropped by 1.96% to $72.08 per barrel.
U.S. stock markets rose overnight in response to the drop in oil prices. The Dow Jones Industrial Average closed up 139.02 points (0.27%) at 52,487.41.
The Standard & Poor's 500 index rose by 60.93 points (0.81%) to close at 7,543.64, while the Nasdaq Composite increased by 336.24 points (1.30%) to finish at 26,206.89.
As of 9:25 a.m., the dollar index, which measures the value of the dollar against six major currencies, stood at 100.93.
Min Kyung-won, an economist at Woori Bank, stated, "The exchange rate is expected to attempt to fall below 1500 won, reflecting a recovery in risk appetite for tech stocks and a weaker dollar. However, considering the trading patterns of importers securing payments in dollars around mid-month, there may be significant demand for dollars starting from the low 1500s."
* This article has been translated by AI.
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