The won-dollar exchange rate stood at 1,476 won at 9 a.m. on the 21st. That was down 2.4 won (0.16%) from the prior transaction day's weekly closing price. The Seoul foreign exchange market opened at 1,477.9 won at 6 a.m. that day.
There is a view that the exchange rate could rise that day. With military clashes between the United States and Iran intensifying, the won is likely to weaken. Min Kyung-won of Woori Bank said, "The Middle East geopolitical risk level is continuing to trend upward," citing Middle East uncertainty as a factor for a higher exchange rate.
As the three major stock indexes fell on the New York stock market on the 20th (local time), the increased likelihood that the domestic stock market, where Samsung Electronics and SK hynix have high weights, will also fall is another burden on the exchange rate. If demand for risky asset declines, the exchange rate can rise. The KOSPI started at 6,553.88, up 0.57% from the prior transaction day, but fell to the 6,450 level around 9:14 a.m.
However, some say the rise in the exchange rate may be limited due to demand for currency exchange stemming from SK hynix's American depositary receipt (ADR) listing. SK hynix is converting the $26.5 billion it raised through the ADR listing into won. This has the effect of supplying dollars to the foreign exchange market.