Against the U.S. dollar, the won-dollar exchange rate stood at 1,418.8 won at about 9 a.m. on the 11th. That was up 0.4 won (0.03%) from the prior weekday transaction close.
There is an outlook that the rate could hit the 1,420-won level that day. Negotiations over the Strait of Hormuz have reached an impasse, pushing international oil prices higher. If that happens, demand for the safe-haven dollar may increase and the exchange rate could rise.
Iran is said to be refusing direct talks with the United States, citing certain conditions. As a result, on the 10th (local time), Brent crude, the benchmark for international oil prices, and West Texas Intermediate (WTI) futures each rose 5% from the prior transaction day. The same day, the Standard & Poor's (S&P) 500 fell 0.06%, and the Nasdaq composite fell 0.32%.
However, the rise may be limited as exporters, including SK hynix, are releasing their dollars into the market. Min Kyung-won of Woori Bank said, "Given the won's relative sensitivity to international oil prices, the exchange rate is in an environment where it is prone to upward pressure that day," adding, "Exporters did not sell large volumes the previous day, but if the rate climbs further, supply could emerge as chase-selling, so attention is needed to the possibility of supporting the upper end of the rate."