The won-dollar exchange rate opened at 1,480.1 won on the 12th against the U.S. dollar. It rose 13.6 won from the previous day.
This is seen as stemming from market jitters after a ship was hit in the Strait of Hormuz. When investment in risk assets contracts in the market, the won, which is not a key currency, tends to weaken.
Overnight in the Strait of Hormuz area, four ships came under attack by Iranian forces. The Islamic Revolutionary Guard Corps (IRGC) said in a statement that it struck the Liberia-flagged cargo ship Xpress Rome, owned by an Israeli company, and brought the vessel to a halt. It added that "the vessel operated while ignoring warnings from the Revolutionary Guard Navy."
The Thai-flagged container ship Mayurinari was also reported to have been attacked. According to foreign media, the vessel caught fire in the attack and 20 crew members were rescued by the Oman Navy. Three crew members remain, and rescue operations are underway.
Min Kyung-won, a Woori Bank researcher, said, "News that a civilian ship was hit is stoking market anxiety," and noted, "Concerns are growing that the Iran war could drag on."
Meanwhile, the Office of the United States Trade Representative (USTR) said on the 11th (local time) that it would launch a Section 301 investigation of the Trade Act into 16 countries, including Korea. Section 301 provides grounds for retaliation—such as additional tariff imposition and restrictions on imports, services, and investment—when there are unfair acts by foreign governments against U.S. corporations. This is also highly likely to weigh on the won.