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The won/dollar exchange rate rose to the 1,480 won level as international oil prices soared due to rising tensions in the Middle East and expectations for a US benchmark interest rate cut diminished.
On the 30th, the weekly closing price of the won against the US dollar in the Seoul foreign exchange market (as of 3:30 PM) 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, rose to 1,488.0 won immediately after opening, and then reduced its gains in the afternoon.
As military tensions in the Middle East escalate again, international oil prices are soaring and the dollar is strengthening.
On this day, the US online media Axios reported that Brad Cooper, commander of the US Central Command, is scheduled to report new plans 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 clashes between the two countries again.
As a result, international oil prices surged, with Brent crude futures prices soaring to $126.41 per barrel during intraday trading. This is the highest intraday price since June 2022.
West Texas Intermediate (WTI) crude oil futures prices also surpassed the $100 mark.
As the dollar also strengthened, the dollar index, which indicates the value of the dollar against six major currencies, exceeded 99. It is currently at 99.001, up 0.08%.
Overnight, the US Federal Reserve (Fed) kept its benchmark interest rate frozen at 3.50% to 3.75% per annum.
However, it was interpreted as a 'hawkish freeze' as three committee members issued a minority opinion opposing the use of a 'dovish stance' that signals a likely interest rate cut in the statement.
The KOSPI closed lower after setting a new intraday high.
On this day, the KOSPI in the stock market closed at 6,598.87, down 92.03 points (1.38%) from the previous trading day. The index temporarily rose to 6,750.27 during intraday trading, setting a new intraday high record.
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 exceeded 160 yen today and is expanding its gains. It is currently at 160.589 yen, up 0.15%.
The won/yen cross rate was 923.37 yen per 100 yen, down 2.65 won from the previous day's closing price at 3:30 PM.
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