The won-dollar exchange rate is trading in the high 1340s amid heightened risk aversion.
As of 9:05 a.m. on September 15, the exchange rate in the Seoul foreign exchange market stands at 1346.1 won per U.S. dollar. The rate was recorded at 1346.2 won as of 6 a.m., down 1.1 won from the previous session's closing price.
U.S. stock markets fell sharply overnight. The Dow Jones Industrial Average closed down 152.09 points (0.29%) at 52,421.20.
The Standard & Poor's (S&P) 500 index dropped 37.00 points (0.48%) to close at 7,619.98, while the tech-heavy Nasdaq Composite Index fell 146.62 points (0.56%) to finish at 26,186.41.
U.S. Treasury yields surged significantly. The yield on the benchmark 10-year Treasury note rose above the psychological resistance level of 5%, reaching 5.012% during trading.
This marks the first time since October 2023 that the 10-year Treasury yield has exceeded 5%, and only the second occurrence since the global financial crisis in 2007.
International oil prices also increased due to concerns over supply disruptions following the closure of a key oil pipeline in Saudi Arabia. November Brent crude futures rose 1.02% to $105.68 per barrel, while October West Texas Intermediate (WTI) crude futures increased by 1.34% to $101.39 per barrel.
As demand for safe-haven assets grows, the dollar index, which measures the value of the dollar against six major currencies, rose by 0.377% to 99.490.
Analysts expect the exchange rate to rise further due to investors' risk aversion. Min Kyung-won, an economist at Woori Bank, stated, "The pressures from Middle East tensions and risk-off sentiment are likely to dominate, and active responses from domestic demand entities may further drive up the exchange rate."
* This article has been translated by AI.
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