The won-dollar exchange rate against the U.S. dollar closed weekly trading at 1,480.1 won at 3:30 p.m. on the 22nd. That was up 6.7 won (0.45%) from the previous trading day's weekly closing price. Since the 14th, it has stayed in the 1,400-won range for six consecutive trading sessions.
The rise in the exchange rate is seen as stemming from the growing likelihood that U.S.-Iran military clashes will drag on. When conditions resemble war, demand for the safe-haven dollar can increase and the exchange rate can rise. The dollars supplied to the Seoul foreign exchange market from SK hynix's U.S. depository receipts (ADR) listing are not enough by themselves to keep pushing the exchange rate down.
The dollar index, which shows the value of the dollar against the currencies of six major countries, was 101.15, up from around the same time the previous day (100.9). The United States began airstrikes on Iran on the 11th. U.S. President Donald Trump even mentioned strikes on "Pickaxe Mountain," believed to host Iran's nuclear facilities. Iran's military is responding, saying it will "strike all U.S. assets in the Middle East."
Foreign investors were net sellers of 191.2 billion won in the main stock market that day. They had been net buyers for two straight days through the previous day but turned to selling. If foreign investors sell Korean stocks and convert the proceeds into dollars, the exchange rate can rise.
However, some expect the rise in the exchange rate to be limited. On the 21st (local time), the three major indexes ended higher on the New York stock market, sustaining investor appetite for risk assets.