The won-dollar pair opened in the mid-1,350-won range and sought direction under the influence of yen appreciation and Middle East uncertainty, as well as oil prices and US interest rates. The New York market's NDF and the previous day's movements also formed part of the background.
In the Seoul market, the won-dollar pair opened at 1,357.6 won, up 0.1 won from the previous trading day's close. The next day's NDF was quoted at 1,355.1 won for the one-month contract, a slightly lower level than the spot rate.
The dollar was generally weak overnight, the dollar index fell, and the dollar-yen pair moved toward a stronger yen. Warnings from the Japanese government about yen weakness and shared concerns about yen weakness between the Japanese and US leaders led the yen higher.
While uncertainty originating in the Middle East acted as an upward factor for the foreign exchange market, oil prices drew market attention as an important variable. A renewed rise in crude oil prices could put upward pressure on the dollar.
Persistently high US interest rates pose downside risks to the won. The outlook indicated that movements in the bond market, alongside rising long-term US yields, would affect foreign exchange rates.