Employees are seen working at the dealing room of Hana Bank's headquarters in Jung-gu, Seoul, on the 23rd. On this day, the KOSPI opened at 5,580.15, down 201.05 points (3.48%) from the previous trading day, and the KOSDAQ opened at 1,129.86, down 31.66 points (2.73%). [Yonhap News] 

The domestic financial market was significantly shaken from the beginning of the week as the Middle East situation failed to find a resolution on the 23rd.

The won/dollar exchange rate surpassed 1,510 won for the first time since the financial crisis, and the KOSPI slipped below the 5,500 mark. Bond yields also surged as expectations for an interest rate hike emerged.

On this day, in the Seoul foreign exchange market, the won-to-dollar exchange rate was 1,510.4 won as of 9:50 AM, up 9.8 won from the closing price of the previous trading day (as of 3:30 PM).

The exchange rate, which started at 1,504.9 won, up 4.3 won, rose to 1,511.8 won around 9:43 AM. This is the highest level since March 10, 2009 (intraday high of 1,561.0 won) during the global financial crisis.

The exchange rate is in a phase of increased volatility due to the Middle East situation.

U.S. President Donald Trump announced on the 21st (local time) that he would devastate Iranian power plants if Iran did not completely open the Strait of Hormuz within 48 hours.

In response, the Iranian military countered by stating they would "respond more severely to any attack from an enemy nation," further escalating tensions originating from the Middle East.

The dollar index, which represents the value of the dollar against six major currencies, is around 99.677, up 0.188 from the previous day. It had fallen below 99 on the 19th and has now approached 100 again.

The stock market turned red.

At the same time, on the Korea Exchange, the KOSPI is trading at 5,447.29, down 333.91 points (5.78%) from the previous trading day.

Top market capitalization stocks such as Samsung Electronics [005930] (-5.17%), SK Hynix [000660] (-6.55%), Hyundai Motor [005380] (-4.26%), and LG Energy Solution [373220] (-4.13%) are all declining.

Foreign investors are leading the index's decline, net selling 1.399 trillion won worth of stocks. Individuals are net buying 2.7363 trillion won, while institutions are net selling 1.45 trillion won.

The KOSDAQ index is also down, trading at 1,110.02, a decrease of 51.50 points (4.43%).

Bond yields are rising.

The yield on 3-year government bonds rose by 8.9 basis points (1bp = 0.01% point) to 3.501% per annum, and the yield on 10-year government bonds rose by 7.6 basis points to 3.811% per annum, respectively.

The bond market appears to be influenced by the assessment that Shin Hyun-song, the nominee for the next governor of the Bank of Korea, has a 'hawkish' (monetary tightening preference) inclination.

Global investment bank Citi projected in a report released today that nominee Shin could signal a base rate hike to the market as early as May of this year.

Cryptocurrencies, considered representative risk assets, are all showing weakness.

On the domestic exchange Upbit, one Bitcoin is trading at 101.752 million won, down 0.26% from the previous day. Ethereum is down 0.36% at 3.072 million won, and XRP (Ripple) is down $0.43 at 2,071 won.