Seoul’s foreign exchange market opened with the US dollar trading at 1,462.3 Korean won, reflecting a sharp 22.6-won increase from Friday’s close of 1,439.7 won.
Middle East Tensions Drive Surge
Escalating geopolitical risks in the Middle East, including recent US airstrikes on Iran and fears of Strait of Hormuz disruptions, propelled the won’s depreciation. Analysts point to heightened safe-haven demand for the dollar and surging oil prices as key factors amplifying the move.
Market Implications
Market observers warn of potential further upside toward 1,480 won in the short term, driven by persistent global uncertainties. Exporters may benefit from the weaker won, though importers face rising costs. Domestic stocks declined at open, with the Kospi down 1.26% and Kosdaq off 1.92%.
Traders monitor developments closely, as any escalation could intensify volatility in currency and energy markets.
