The won-dollar exchange rate opened at 1,555.2 won on the 8th. It rose 16.1 won from the previous transaction day. This is the first time the won-dollar rate has started trading above 1,555 won since Mar. 6, 2009 (1,590 won), during the global financial crisis.
On this day, the won-dollar rate is expected to finish in the high 1,500-won range. That is because foreign investors are expected to continue net selling Korean stocks. When foreigners sell Korean stocks and exchange the proceeds into dollars, dollar demand increases, pushing the won-dollar rate higher. Foreigners have recorded net selling for 20 consecutive transaction days as of the previous transaction day. The cumulative net selling during this period amounts to 70 trillion won.
Rising tensions in the Middle East also played a role. Iran directly attacked Israeli territory on the 7th local time. It was the first time since the cease-fire in Apr. Israel said it was a retaliatory move after the Israeli military struck the southern outskirts of Beirut, Lebanon. The U.S.-Iran war reached its 100th day on the 7th, but a peace deal has not been reached.
The won-dollar rate has remained above 1,500 won for 14 consecutive transaction days from the 15th of last month to the 5th.