The KRW/USD exchange rate is about to break through 1,500 won, affected by rising international oil prices and net selling by foreigners.

The Korean won to US dollar exchange rate has risen to nearly 1,500 won, intensifying market tension. This is related to international oil prices breaking through $100 and surging sharply.

On the 16th, in Seoul’s foreign exchange market, the won to dollar exchange rate closed at 1,497.5 won, up 3.8 won from the previous trading day. This increase in the exchange rate marks the highest level since the 2008 financial crisis, driven by turmoil in the Middle East causing oil prices to spike. Notably, the exchange rate temporarily rose to 1,501 won during trading but later stabilized and closed lower.

Due to instability in the Middle East, international oil prices remain high. West Texas Intermediate crude oil briefly fell to around $96 but then rebounded to $99.43. These oil price fluctuations are putting pressure on the won, prompting market speculation about possible intervention by domestic and foreign foreign exchange authorities.

Another reason for the exchange rate rise is net selling by foreign investors. On that day, foreigners net sold 8,475 billion won on the Korea Exchange, which was a major factor in the exchange rate increase. The Korea Composite Stock Price Index (KOSPI) closed up 1.14% at 5,549.85 points, while the KOSDAQ index closed down 1.27% at 1,138.29 points.

This trend is likely to continue with the ongoing volatility of international oil prices and exchange rates. The intervention of foreign exchange authorities and the stability of international situations are expected to significantly impact the exchange rate and stock markets. Market experts advise that measures should be prepared to address future volatility.