International oil prices surpassed $100, and the Korean won against the US dollar appreciated by 15 won in a single day.

International oil prices have once again surpassed $100, and the Korean won against the US dollar appreciated nearly 15 won within a day. Last week, the surge in oil prices slowed down, and the won continued to strengthen, but instability in the international situation has impacted the exchange rate market.

On the 12th, the won to US dollar exchange rate in Seoul’s foreign exchange market rose by 14.7 won from the previous day, closing at 1,481.2 won. The rate opened at 1,480.1 won, briefly climbed to 1,484.5 won in the morning, but the gains later narrowed. This fluctuation was caused by Brent crude futures prices soaring over 10% intraday, pushing oil prices above $100 again. The US West Texas Intermediate crude also rose into the $90 range.

The recent surge in oil prices is closely related to tensions around the Strait of Hormuz, triggered by incidents such as attacks on oil tankers in Iran. Iran’s attacks threaten the Strait of Hormuz, a major maritime route, increasing concerns over global energy supply. As a result, volatility in the international energy market has increased, leading to a stronger dollar and a weaker won.

Additionally, foreign investors recorded a net sell of 23.63 trillion won in the domestic stock market, which contributed to the rise in the exchange rate. As a result, the Korea Composite Stock Price Index (KOSPI) fell by 26.70 points to close at 5,583.25. The instability in the stock market has also prompted investors to favor safe assets like the US dollar.

Looking ahead, the exchange rate market is likely to be heavily influenced by international oil prices and geopolitical tensions. Especially, conflicts in the Middle East may continue to boost market risk aversion, potentially exerting a negative impact on the won in the short term. Experts advise closely monitoring the relationship between oil prices and exchange rates amid this volatility.