Oil prices break through $100, USD/KRW exchange rate at 1490 won... Financial markets are experiencing heightened anxiety

As international oil prices surpass $100 per barrel, the Korean won against the US dollar rose to around 1,490 won during trading, reaching the highest level since the financial crisis. This is the result of rising international oil prices and increased global risk aversion.

On the 9th, in Seoul’s foreign exchange market, the won against the dollar appreciated by 17.3 won from the previous trading day, closing at 1,493.7 won. This is the highest level since the 2009 financial crisis. The exchange rate opened at 1,493.0 won and continued to fluctuate within the 1,490 won range.

As conflicts in the US and Middle East intensify, international oil prices broke through $100 per barrel. West Texas Intermediate (WTI) futures reached $107.54, and Brent crude also surpassed $100, greatly increasing uncertainty in the raw materials market. This boosted investor risk aversion and strengthened the US dollar. The dollar index rose to 99.540, showing strength against the six major currencies.

Amid these financial market movements, South Korea’s KOSPI continued to decline. The index dropped to around 5,200 points early in trading, with foreign investors accelerating their withdrawal from the Korean market. This domestic stock market trend has become a factor in the weakening of the won. The yen against the dollar also weakened, trading at 158.391 yen.

To ease the current economic tensions, the government held an emergency economic review meeting chaired by President Lee Jae-myung. The meeting discussed comprehensive economic response plans, including oil prices and exchange rates, and is closely monitoring the Middle East situation and its economic impact.

The future direction of the won against the dollar depends on international oil prices and US diplomatic developments. If geopolitical risks in the Middle East are not alleviated, the strong dollar and weak won trend may continue for some time.