Won–dollar exchange rate surges past 1,530 won

According to The Financial News, the won–dollar exchange rate ended weekly trading in the 1,530-won range, marking its highest level in 17 years since the global financial crisis.
On the Seoul Foreign Exchange Market on the 31st, the won–dollar rate closed at 1,530.1 won, up 14.4 won from the previous session.
The rate opened the day at 1,519.9 won and soon broke through 1,520 won in morning trading. In the afternoon, gains accelerated and the rate climbed above 1,530 won, at one point briefly approaching 1,540 won and highlighting increased volatility.
Market participants view heightened military tensions between the United States of America (US) and Iran as a key driver of the rise in the exchange rate. As risk in the Middle East has grown, international oil prices have continued to climb, strengthening risk-off sentiment and increasing downward pressure on the won.
Supply-and-demand factors have also added pressure. On the Stock Market Division of the Korea Exchange, foreign investors recorded net selling of more than 3 trillion won for the day, extending their streak of net selling in the trillions of won to nine consecutive sessions. This outflow of foreign capital is seen as having fueled the rise in the exchange rate.
With external uncertainties and supply-demand pressures overlapping, volatility in the exchange rate is expected to persist for the time being.

imne@fnnews.com Hong Ye-ji Reporter