The won-dollar exchange rate is trading in the 1340s.
As of 9:27 a.m. on November 3, the exchange rate in the Seoul foreign exchange market is 1,342.8 won against the U.S. dollar. The rate was recorded at 1,346.0 won as of 6 a.m., up 2.2 won from the previous day's closing rate.
This slight increase is interpreted as a result of reduced risk appetite. Overnight, U.S. stocks showed mixed results. The Dow Jones Industrial Average closed up 213.67 points (0.41%) at 51,983.98.
In contrast, the S&P 500 index fell by 38.67 points (0.51%) to close at 7,541.40, while the tech-heavy Nasdaq Composite dropped 272.68 points (1.07%) to finish at 25,164.32.
In the early trading session, foreign investors are showing a selling trend in the domestic stock market, with net sales of 226.7 billion won in the KOSPI.
International oil prices plummeted amid speculation about potential negotiations between the U.S. and Iran. December futures for Brent crude fell 7.63% to $104.77 per barrel, while December futures for West Texas Intermediate (WTI) dropped 7.36% to $96.46 per barrel.
The dollar index, which measures the value of the dollar against six major currencies, fell by 0.13% to 101.758, marking its fourth consecutive day of decline. Expectations for negotiations between the U.S. and Iran have influenced this trend.
On November 2, President Donald Trump stated in an interview with Axios that there is no need to rush a decision on whether to resume attacks on Iran following the midterm elections, lending weight to the possibility of negotiations.
The exchange rate is expected to rise today. Min Kyung-won, an economist at Woori Bank, noted, "As the decline in tech stocks continues, risk appetite is shrinking, leading to upward pressure on the exchange rate. The political uncertainty surrounding the U.S. midterm election results is also contributing to risk aversion."
He added, "Remittances for sales and the purchase of custody dollars will stimulate upward movement in the exchange rate. Although there may be a wait-and-see attitude following a significant rise in the exchange rate the previous day, real demand from payment needs is expected to support the increase in the exchange rate."
* This article has been translated by AI.
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