Rising international oil prices and weak US employment have led the exchange rate to a record high of 1,482 won

The USD-KRW exchange rate showed a downward trend during overnight trading, closing around 1,482 KRW. This was the result of rising international oil prices combined with disappointing U.S. employment data.

Initially, due to a surge in international oil prices, the USD-KRW exchange rate spiked to around 1,495 KRW. Qatar’s energy authorities warned of a potential blockade of the Strait of Hormuz, leading to market expectations of a significant increase in oil prices. Additionally, news of Kuwait’s production cuts pushed oil prices higher. Moreover, President Donald Trump’s pressure on Iran also heightened market concerns.

However, the market was significantly impacted by the unexpected decline of 92,000 non-farm payroll jobs in February. The unemployment rate also rose to 4.4%, exceeding expectations. These weak employment indicators caused the dollar to weaken, and the exchange rate gradually declined.

During the New York trading session, the USD-KRW rate fell to the early 1481 KRW range, influenced by a decline in the U.S. 2-year Treasury yield and overall dollar weakness. This was about 14 KRW below the intra-day high. On that day, the total trading volume through Seoul foreign exchange brokers and Korean financial intermediaries was $13.933 billion.

This trend indicates that global economic indicators and fluctuations in international oil prices may continue to significantly impact the exchange rate in the future. Especially with the ongoing U.S. economic recovery and international geopolitical developments affecting crude oil prices, these factors are expected to continue exerting notable influence on the currency exchange rate.