[GLOBAL ECONOMIC TIMES] Concerns are growing that the won-dollar exchange rate, which has soared to the 1,390 won range due to Israel's airstrikes on Iran, will enter the 1,400 won range. The Bank of Korea is also conducting an emergency inspection and is closely watching the impact on the foreign exchange market.
On the morning of the 28th, the Bank of Korea held a 'market situation review meeting' chaired by Vice Governor Yoo Sang-dae to examine the development of geopolitical risks following Israel's airstrike on Iran over the weekend and the domestic financial and foreign exchange markets.
Israel conducted three airstrikes against Iranian military targets on the 26th. Military tensions in the Middle East are rising again as Iran also indicates that it will respond appropriately to Israeli attacks.
In relation to this, Vice Governor Yoo said, “The prevailing assessment is that Israel’s attack over the weekend was limited, excluding oil and nuclear facilities, but there is a possibility that global risk-off sentiment will be strengthened depending on the level and level of Iran’s response in the future.” “It is difficult to rule it out,” he said. “As volatility in the global financial market may increase in connection with the US presidential election and monetary policy decisions of major countries in the future, we must be especially vigilant and closely monitor the development of related risks and their impact on domestic and foreign finance and the economy.” “We will do it,” he emphasized.
In fact, while risk aversion due to the US presidential election dominates the global foreign exchange market, major indicators such as the US third quarter GDP and October employment report released this week are expected to have a significant impact on the dollar flow. There is also a high possibility that the won-dollar exchange rate will attempt to reach 1,400 won. As of 2:35 p.m. on this day in the Seoul foreign exchange market, the won-dollar exchange rate is trading at 1385.5 won, down 0.36% from the previous day.
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