Won–dollar exchange rate tops 1,500 won again in after-hours trading amid surging oil prices and growing jitters

According to The Financial News, the won–dollar exchange rate finished weekly trading in the 1,490-won range on the 13th due to the impact of a sharp rise in international oil prices, then climbed above 1,500 won during after-hours trading.
In the Seoul Foreign Exchange Market that day, the weekly closing rate for the won against the United States of America (U.S.) dollar, based on 3:30 p.m., was tallied at 1,493.7 won, up 12.5 won from the previous day.
The exchange rate opened at 1,490.6 won, 9.4 won higher, and fluctuated around the 1,490-won level before ultimately extending its gains.
On the 9th, after international oil prices broke above 100 dollars per barrel, the rate had closed weekly trading at 1,495.5 won, the highest level since the global financial crisis. Four days later, it has once again moved back into the 1,490-won range.
Subsequently, in after-hours trading, the exchange rate was pushed higher by dollar strength and reached 1,500.1 won at around 5:17 p.m.
It is the first time in seven trading days that the rate has exceeded 1,500 won intraday, since it hit an intraday high of 1,505.8 won on the 4th.
Although after-hours trading typically sees lower volumes and therefore larger price swings, the fact that the rate has broken above 1,500 won is being interpreted as a sign that market anxiety is intensifying.
Analysts point to the renewed surge in international oil prices as a key driver of dollar strength, as the war between the U.S. and the Islamic Republic of Iran drags on and geopolitical tensions in the Middle East around the Strait of Hormuz escalate.
Anxiety has further intensified after Ayatollah Sayyid Mojtaba Hosseini Khamenei, elected as the new supreme leader of the Islamic Republic of Iran, repeatedly vowed ultra-hardline measures, including a possible blockade of the Strait of Hormuz.
In addition, an increase in net selling of domestic stocks by foreign investors has added upward pressure on the exchange rate.
On the Stock Market Division of the Korea Exchange that day, foreign investors recorded net selling of about 1.4653 trillion won. As a result, the KOSPI closed at 5,487.24, down 96.01 points (1.72%).


hjkim01@fnnews.com Kim Hak-jae Reporter