The won-dollar exchange rate closed the week at 1,370.4 won at 3:30 p.m. on the 31st. It rose 1.8 won (0.13%) from the prior session's weekly closing price. It was the first rise in five trading days since the 25th of last month.
The rate opened at 1,370.4 won at 9 a.m. and fell to as low as 1,364.3 won in the morning. But it quickly reversed higher and climbed to 1,373.5 won in the afternoon. The drop in the rate appears to have expanded buying demand to purchase dollars at lower prices. In the Seoul foreign exchange market, demand for dollars from importing corporations that buy raw materials overseas and retail investors who invest in U.S. stocks, known as "seohak ants," is cited as a factor pushing the rate higher.
Rising tensions in the Middle East and the resulting uptick in international oil prices are also weighing on the exchange rate. On the 31st (local time), Brent crude, the global benchmark, rose 2.71% from the previous session to $90.49 per barrel. The United States carried out an airstrike on Iran's Larak Island in the Strait of Hormuz, and Iran launched an attack on a U.S. military base in the United Arab Emirates (UAE).
The likelihood of an interest rate hike by the Federal Reserve (Fed) has also increased. However, U.S. Treasury Secretary Scott Bessent expressed a negative view on raising rates, limiting the dollar's strength. President Donald Trump also said, "I think rates are too high."