The won-dollar exchange rate against the U.S. dollar closed at 1,497.5 won on the 16th. It rose 3.8 won from the previous day.
That day, the won-dollar exchange rate opened at 1,501 won, breaking 1,500 won in daytime transactions (9 a.m.–3:30 p.m.) for the first time in 17 years. It was the first time since March 12, 2009 (intraday high of 1,500 won) that it crossed 1,500 won during the session.
This month, it also exceeded 1,500 won twice in overnight transactions (3:30 p.m.–2 a.m. the next day). On this day, it also touched 1,500 won in daytime transactions. However, as gains narrowed before the daytime close, the won-dollar exchange rate finished in the 1,490-won range.
The rise in the won-dollar exchange rate is seen as stemming from the United States saying it struck Kharg Island in the Persian Gulf, a key terminal for Iran's crude exports. When signs point to a protracted war, risk appetite tends to weaken and the value of the won, which is not a reserve currency, tends to fall.
U.S. President Donald Trump said in an interview with local media on the 14th, local time, that Kharg Island was "completely destroyed. We could hit it a few more times for fun." The same day, U.S. Central Command (CENTCOM) said it bombed Iran's Kharg Island and destroyed more than 90 Iranian military facilities.
Iran says it has no reason to negotiate with the United States and is prepared for a prolonged war. Iran Foreign Minister Abbas Araghchi said in an interview with CBS on the 15th, local time, "We are ready to defend ourselves for as long as it takes." He added, "We will continue to defend until President Trump realizes this is an illegal war he cannot win."
Park Sang-hyeok, an analyst at iM Securities, said, "If high oil prices persist due to growing uncertainty over the Iran situation, the won-dollar exchange rate settling above 1,500 won looks inevitable," adding, "With the likelihood of breaking above 1,500 won rising, the strength of the government's intervention will be key."