International oil prices have sharply declined, leading to a downward trend in the won-dollar exchange rate.
As of 9:13 AM in the Seoul foreign exchange market, the exchange rate for the Korean won against the U.S. dollar stood at 1345.5 won. Earlier, at 6 AM, the rate was trading at 1340.0 won, down 7.1 won from the previous day's closing rate.
This decline is attributed to a recovery in risk appetite following a slight easing of geopolitical tensions in the Middle East.
On November 9, U.S. President Donald Trump wrote on his social media platform, Truth Social, "We are seeing positive momentum toward ending this conflict."
In an interview with CNN on November 8, Trump stated that the likelihood of resuming military strikes against Iran is "very small," provided there is an agreement between both sides.
As a result, international oil prices fell sharply. January futures for Brent crude dropped 5.85% to $92.57 per barrel, while December futures for West Texas Intermediate (WTI) fell 3.98% to $86.85 per barrel.
The New York stock market also surged in response to the drop in oil prices and bargain hunting in technology stocks. The Dow Jones Industrial Average closed up 1,104.02 points (2.15%) at 52,389.75.
The S&P 500 index rose 173.08 points (2.35%) to close at 7,549.94, while the tech-heavy Nasdaq Composite jumped 673.71 points (2.74%) to finish at 25,253.14.
The dollar also weakened, with the dollar index, which measures the dollar's value against six major currencies, falling 0.59% to 101.674.
The exchange rate is expected to continue to decline. Min Kyung-won, an economist at Woori Bank, noted, "The exchange rate is likely to show a downward trend due to the dollar's weakness and a preference for risk assets. The recovery in investment sentiment for AI semiconductors, combined with the sharp drop in oil prices, will positively impact the won."
He added, "From a supply and demand perspective, the weakening of foreign selling pressure, which had been a driving force behind the recent rise in the exchange rate, is a positive sign. On the previous day, when the exchange rate rose to the 1360 won range, there was a surge in selling as traders recognized it as a peak, but foreign selling could not offset this, leading to a decline in the exchange rate."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.