The won-dollar exchange rate was 1,347.3 won at 9 a.m. on the 15th, the same level as the prior trading day's weekly transaction closing price.
There are projections that the rate could rise today due to tensions in the Middle East. With international oil prices climbing and U.S. Government Bonds yields surging, the New York stock market fell, piling bearish factors on the won. Min Kyung-won of Woori Bank said, "As oil supply concerns stack up, instability in the Middle East is intensifying," adding, "Overnight, even talk of slowing artificial intelligence (AI) development gathered pace, and semiconductor stocks mostly fell, raising the possibility that risk-off sentiment will flow into the domestic market."
On the 14th (local time), Brent crude futures, the international oil price benchmark, rose 1.02% from the previous session to $105.68 per barrel. The U.S. Government Bonds 10-year yield, a bellwether for the global bond market, hit 5.01% intraday. It was the first time it topped 5% since Oct. 2023, nearly three years ago. The Standard & Poor's (S&P) 500 index fell 0.48%, and the Nasdaq composite index fell 0.56%.
However, some expect the upside to be limited. As major domestic corporations' semiconductor exports remain strong, dollar supply in the Seoul foreign exchange market is holding up. When corporations convert export-earned dollars into won, the won strengthens, which pushes the exchange rate down.