International oil prices surged, causing the won-dollar exchange rate to rise into the 1360s.
As of 9:26 a.m. in the Seoul foreign exchange market, the exchange rate for the won against the U.S. dollar was 1365.5 won. The rate at 6 a.m. was 1364.6 won, up 5.2 won from the previous day's closing rate of 3:30 p.m.
The won appears to be under pressure due to rising international oil prices, increasing U.S. Treasury yields, and a strengthening dollar.
Overnight, international oil prices soared amid concerns over supply disruptions, reaching their highest level since May 19. Brent crude for November delivery closed at $108.75 per barrel, up 2.90%, while West Texas Intermediate (WTI) for October delivery rose 4.38% to $105.83.
U.S. Treasury yields also increased, with the benchmark 10-year Treasury yield rising to 5.041% by 5 a.m., the highest level since July 2007.
U.S. stock markets fell across the board. The Dow Jones Industrial Average closed down 328.09 points (0.63%) at 52,093.11.
The S&P 500 index fell 34.25 points (0.45%) to 7,585.73, while the tech-heavy Nasdaq Composite dropped 204.84 points (0.78%) to 25,981.57.
The dollar index, which measures the dollar's value against six major currencies, rose 0.149% to 99.638.
The exchange rate is expected to continue rising. Min Kyung-won, an economist at Woori Bank, stated, "The ongoing rise in international oil prices is likely to dampen risk appetite, leading to further increases in the exchange rate."
He added, "As the exchange rate rebounds, importers who had been on the sidelines are likely to secure more dollars, and speculative demand betting on a stronger won is diminishing, suggesting a significant chance the rate will rise into the high 1360s before the Federal Open Market Committee (FOMC) meeting today."
* This article has been translated by AI.
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