On the 19th, the won-dollar exchange rate surged to the 1,380 won level due to the possibility of U.S. involvement in the Iran-Israel war.
According to the Seoul foreign exchange market on that day, the weekly closing price for the won-dollar exchange rate (as of 3:30 p.m.) was recorded at 1,380.2 won, an increase of 10.8 won from the previous day. This is the first time the weekly closing price has exceeded 1,380 won since the 30th of last month (1,380.1 won).
The exchange rate opened at 1,375.0 won, an increase of 5.6 won from the previous day. It then widened the gains and rose to 1,386.3 won during the day as reports emerged from foreign media suggesting that the U.S. could attack Iran's nuclear facilities as early as this weekend.
Amid a week-long escalation of Middle East tensions sparked by Israel's large-scale airstrikes, President Donald Trump has continuously mentioned the possibility of U.S. participation. However, on this day, when reporters asked related questions, President Trump exhibited an ambiguous stance, saying, 'I want to make the final decision one second before the deadline.'
As geopolitical conflicts deepen, the value of the safe-haven U.S. dollar is rising. The dollar index, which shows the dollar's value against six major currencies, increased by 0.55% to 99.103 compared to the previous day. The dollar-yen exchange rate recorded an increase of 0.2% at 145.240 yen.
As of 3:30 p.m., the won-yen exchange rate was 950.26 won per 100 yen, an increase of 5.49 won from the previous day's rate at 3:30 p.m.
Wi Jaehyun, an economist at NH Futures, noted, 'The ongoing aggressive comments from President Trump regarding Iran have strengthened the preference for safety in the foreign exchange market.' He mentioned that the exchange rate would continue to fluctuate, focusing on demand and supply and the risk aversion stemming from geopolitical risks.