The won-dollar exchange rate against the U.S. dollar opened at 1,494.2 won on the 15th. It rose 3.2 won from the previous trading day.
Analysts say the won-dollar exchange rate is likely to rise on the day. The British pound has plunged, creating a relative dollar-strength backdrop. When the dollar stays strong, the won weakens and the won-dollar exchange rate climbs. United Kingdom Prime Minister Keir Starmer is facing intense pressure to resign after a crushing defeat in local elections, adding to the turmoil.
Net selling of Korean stocks by foreigners is also expected to have an impact. When foreigners convert proceeds from selling Korean stocks into dollars, dollar demand increases, which tends to push the won-dollar exchange rate higher. The domestic Korea Composite Stock Price Index (KOSPI) is hitting a record high, but foreigners have been net sellers of 20 trillion won so far this month.
However, some expect the upside to be limited. As the won-dollar rate nears 1,500 won, demand increases from export corporations to convert dollars earned overseas into won. When dollar-selling orders hit the market, it becomes a factor that pushes the won-dollar rate lower. Min Kyung-won of Woori Bank said, "When it rose above 1,500 won after the U.S.-Iran war broke out, exporters cleared out a large amount of dollars they had been sitting on."