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The won-dollar exchange rate rose to the 1,480 won range as international oil prices surged due to heightened tensions in the Middle East and expectations for a US benchmark interest rate cut diminished.
On the 30th, the won-dollar exchange rate's weekly closing price (as of 3:30 PM) in the Seoul foreign exchange market was recorded at 1,483.3 won, up 4.3 won from the previous day.
The exchange rate started at 1,486.5 won, up 7.5 won, rising to 1,488.0 won immediately after opening, then reduced its gains in the afternoon.
As military tensions in the Middle East escalate again, international oil prices are surging, and the dollar is showing strength.
On this day, US online media Axios reported that US Central Commander Brad Cooper is scheduled to report a new plan for military action in Iran to US President Donald Trump.
President Trump stated that he would maintain a naval blockade against Iran until a nuclear agreement with Iran is reached.
Iran is also maintaining a hardline stance, increasing the possibility of military conflict between the two countries once again.
Accordingly, international oil prices soared, with Brent crude futures prices surging to $126.41 per barrel during the day. This is the highest intraday level since June 2022.
West Texas Intermediate (WTI) crude oil futures prices also surpassed the $100 mark.
The dollar also showed strength, with the dollar index, which indicates the dollar's value against six major currencies, surpassing 99. It is currently at 99.001, up 0.08%.
Overnight, the US Federal Reserve (Fed) froze its benchmark interest rate at 3.50% to 3.75% annually.
However, it was interpreted as a 'hawkish freeze,' as three committee members issued a minority opinion opposing the use of 'dovish language' in the statement that would signal a likely interest rate cut.
The KOSPI closed lower after hitting an intraday high.
On this day, in the KOSPI market, the KOSPI closed at 6,598.87, down 92.03 points (1.38%) from the previous trading day. The index had briefly risen to 6,750.27 during the day, setting a new intraday high.
Foreign investors net sold approximately 1.4562 trillion won worth of domestic stocks.
As risk aversion sentiment grows, the yen is also weakening.
The yen-dollar exchange rate surpassed 160 yen today and is increasing its gains. It is currently at 160.589 yen, up 0.15%.
The won-yen cross rate was 923.37 won per 100 yen, down 2.65 won from the previous day's closing price at 3:30 PM.
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