As the possibility of U.S. involvement in the Israel-Iran conflict arises, the won-dollar exchange rate rose by more than 17 won on the 18th. Experts predict that the exchange rate will exceed 1380 won that day.
On this day, the won-dollar exchange rate in the Seoul foreign exchange market opened at 1379.9 won, up 17.2 won from the previous trading day's closing price (as of 3:30 p.m.). This is the first time the exchange rate has started in the 1370 won range since the 4th (1375.0 won).
Concerns are growing that U.S. forces could become directly involved in an attack by Israel on Iran and in the removal of nuclear facilities, intensifying the conflict surrounding the Middle East. Some predict that the U.S. could support Israel by supplying critical weapons such as bunker busters or participating in airstrikes.
President Trump is also escalating the level of the attacks. On the 17th (local time), ahead of a National Security Council (NSC) meeting, he wrote on the social media platform Truth Social, "We know exactly where Iran's so-called 'supreme leader' is hiding," adding, "He is an easy target, but he is safe there. We will not remove him at least for now."
As the possibility increases that the conflict between the two countries could spread throughout the Middle East, market sentiment has clearly shifted toward a preference for safe assets. The U.S. dollar index, which indicates the dollar's value against six major currencies, stands at 98.84. U.S. Government Bonds interest rates have decreased. The yield on 10-year U.S. Government Bonds fell by 6 basis points from the previous day to 4.39%. Government Bonds prices move in the opposite direction to interest rates; when prices rise, interest rates fall.
Wijae Hyun, an economist at NH Futures, said, "Today's won-dollar exchange rate is expected to seek a ceiling between 1375 and 1385 won as it absorbs the overnight surge in the dollar," noting, "The market has been steadily responding to the rise in Trump's pressure on Iran that began yesterday, with rising oil prices and a strengthening dollar."