The won-dollar exchange rate opened at 1,472.9 won on the 4th. It fell 10.4 won from the previous transaction day.
The won-dollar exchange rate is expected to fall on the day as risk appetite for U.S. technology stocks, a risk asset, recovers. All seven of the large U.S. technology stocks (Magnificent 7, M7) posted results that beat market expectations, reviving investor sentiment. Conversely, if demand for the dollar, a safe asset, shrinks, the value of the won rises and the won-dollar exchange rate falls.
On the 1st (local time), the S&P 500 rose 21.11 points from the previous transaction day to close at 7,230.12, marking a record high for the second straight day. The Nasdaq closed above 25,000 for the first time on a closing basis.
Easing uncertainty over a U.S.-Iran war is also expected to weigh on the won-dollar exchange rate. U.S. President Donald Trump said that starting the morning of the 4th (Middle East time), he would launch "Project Freedom" to help third-country ships trapped in the Strait of Hormuz get out.
However, the decline in the won-dollar exchange rate was analyzed to be limited. As gains in the U.S. stock market based on earnings begin, overseas investments by domestic residents could resume. Demand viewing the drop in the won-dollar exchange rate as a buying opportunity on the dip was also analyzed to be considerable.