Won-Dollar Exchange Rate Surges to Mid-1510s, Hitting 1.5-Month High

The won-dollar exchange rate rose to the mid-1510s on the Seoul foreign exchange market on the 22nd, marking the highest level in a month and a half. The won-dollar exchange rate closed at 1517.2 won, up 11.1 won from the previous trading day, and even climbed to 1519.4 won during trading hours.

This rise was attributed to a combination of factors, including the weakening yen and surging international oil prices. The yen's downward trend and foreign investors' continuous net selling of domestic stocks for 12 consecutive trading days (1.9023 trillion won) exerted downward pressure on the Korean won.

The dollar index saw a slight increase to 99.247. Heightened uncertainty in the Middle East and weakened expectations for a US-Iran ceasefire deal influenced the currency's rise. Reports that Iran's supreme leader had instructed limits on exporting enriched uranium abroad heightened market caution.

Foreign exchange authorities intervened verbally to mitigate market volatility just before the weekly trading session closed. The Ministry of Economy and Finance and the Bank of Korea stated that the exchange rate's movement was excessive relative to fundamentals and that they were monitoring the situation with caution, ready to take decisive action if necessary.