The won-dollar exchange rate opened at 1,479 won on the 4th, up 12.9 won from the previous day.
It is seen as the result of risk appetite cooling in the market after U.S. President Donald Trump again said overnight that he could wage war with Iran forever. When market participants shy away from risk assets, the value of the won, which is not a key currency, tends to fall.
On the 3rd (local time), President Trump said on his social media platform Truth Social that the United States has an unlimited stockpile of mid- and high-grade weapons. He also reposted a message he had uploaded a day earlier. In that post, President Trump said that with this stockpile, which is superior to top-tier weapons of other countries, the United States could wage war forever, and very successfully.
In overnight transactions (3:30 p.m.–2 a.m. the next day), the won-dollar exchange rate topped 1,500 won for the first time in 17 years. After crossing 1,500 won at 12:05 a.m., the rate surged to 1,506 won. It is the first time in 17 years since March 2009, during the global financial crisis, that the rate has exceeded the 1,500-won level. However, as the overnight transaction session neared the close, gains narrowed and it finished at 1,485.7 won. Even so, that was 19.6 won higher than the daytime session.
If the won-dollar rate also exceeds 1,480 won in daytime transactions on this day, it will be the first time in about two and a half months since Dec. 23 last year (1,483.6 won). Min Kyung-won, a Woori Bank researcher, said the won's weakness has widened versus major countries due to the negative impact of higher international oil prices from a blockade of the Strait of Hormuz and energy supply disruptions.