The won-dollar exchange rate against the U.S. dollar closed at 1,501 won on the 19th. It rose 17.9 won from the previous day. Based on the weekly transaction (9 a.m.–3:30 p.m.) closing price, it is the highest level since Mar. 10, 2009 (1,511.5 won).
This is seen as the result of risk appetite shrinking after the U.S. Central Bank, the Federal Reserve (Fed), left its benchmark rate unchanged overnight. When investment demand shifts to safe assets rather than risk assets in the market, the value of the won, which is not a key currency, tends to fall.
On the 18th (local time), the Federal Open Market Committee (FOMC) held a regular meeting and decided to keep the benchmark rate at the existing level of 3.5%–3.75%. It cut the benchmark rate by 0.25 percentage point each in Sep., Oct., and Dec. last year, but held in Jan. this year and this month. The rate-cut trend appears to be stalling.
At a press conference after the FOMC, Chair Jerome Powell said, "Inflation is expected to ease to some extent, but not as much as anticipated." He added, "This can be confirmed from the middle of the year, when progress related to tariff starts to appear."
On the same day, international oil prices surged after Israel bombed Iran's key energy facilities. On the ICE Futures Exchange in London, U.K., May delivery Brent futures settled at $107.38 per barrel. That was up 3.8% from the previous session.
According to Iranian media, the South Pars, Iran's largest gas field, and the natural gas processing complex in Asaluyeh on Iran's southwest coast were bombed by Israel. Because of this, blocks 3, 4, 5, and 6 of the South Pars gas field were shut down due to fires.
Min Kyung-won, a researcher at Woori Bank, said, "As the Iran war rages and even Iran's energy facilities are attacked, concerns about a prolonged war are mounting," adding, "With risk appetite weakening, the dollar is strengthening."