The won-dollar exchange rate against the U.S. dollar opened at 1,525.5 won on the 11th. It rose 1.3 won from the previous transaction day.
On this day, the won-dollar exchange rate is expected to stay above 1,520 won. This is because a physical clash has occurred in the Middle East. If the war situation continues, demand for the safe asset, the dollar, will expand, creating a factor pushing the won-dollar exchange rate higher.
According to local reports, on the 10th (local time) the U.S. Central Command launched airstrikes against multiple targets in Iran. In response, Iran countered by fully closing the Strait of Hormuz. The Islamic Revolutionary Guard Corps said, "Due to regional instability, we are immediately closing the Strait of Hormuz to all vessels, including oil tankers and merchant ships."
Net selling of domestic stocks by foreign investors is also expected to have an impact. When foreigners sell domestic stocks and exchange the proceeds into dollars, demand for dollars expands, pushing the won-dollar exchange rate higher. Foreigners recorded net selling of more than 2 trillion won the previous day. It was the 23rd consecutive transaction day of net selling through the previous day. During this period, the cumulative net selling is estimated to exceed 70 trillion won.