On the afternoon of the 4th, the KOSPI and the won/dollar exchange rate are displayed on the status board at the Hana Bank dealing room in Jung-gu, Seoul. The KOSPI closed at 8,639.41, down 162.08 points (1.84%) from the previous trading day, marking its first decline since the 28th of last month. [Yonhap News]

In the Seoul foreign exchange market on the 4th, the won/dollar exchange rate exceeded 1,540 won during overnight trading after closing the day's trading at around 1,529 won.

This surge is attributed to the uncertainty surrounding the situation in the Middle East and the selling of domestic stocks by foreign investors.

In the Seoul foreign exchange market on this day, the closing price for the day's trading of the Korean won against the U.S. dollar (as of 3:30 PM) was 1,529.7 won, an increase of 13.3 won from the previous trading day.

The exchange rate opened the day's trading at 1,530.0 won, up 13.6 won, and after falling to the 1,520s at one point, it widened its gains before closing.

During the subsequent overnight trading, it rose even more sharply, reaching an intraday high of 1,540.3 won around 5:06 PM, significantly surpassing the previous record high of 1,530.1 won set on March 31st.

This is the highest level since March 10, 2009 (intraday high of 1,561.0 won) during the financial crisis.

The exchange rate has remained in the 1,500s for 13 consecutive trading days since exceeding 1,500 won on April 15th (1,500.8 won) based on the closing price for the day's trading.

This is the longest period since the foreign exchange crisis, when it recorded 1,500 won for 49 consecutive trading days from late December 1997 to early March 1998.

It has already surpassed the records of 9 trading days from March 26th to April 7th of this year (immediately after the outbreak of war in the Middle East) and 11 trading days from February 24th to March 10th, 2009, during the financial crisis.

While the domestic foreign exchange market was closed due to the June 3rd local elections, escalating military clashes between the United States and Iran intensified risk aversion sentiment.

The exchange rate also surged in offshore markets overnight after the Office of the U.S. Trade Representative (USTR) announced its decision to impose tariffs on South Korea.

International oil prices are approaching $100 per barrel, having jumped to the high $90s.

The net selling of domestic stocks by foreign investors also fueled the rise in the exchange rate.

On the KOSPI market today, the KOSPI closed at 8,369.41, down 1.84% from the previous trading day, and foreign investors net sold 6.9528 trillion won.

Foreign investors have been selling stocks for 19 consecutive trading days on the KOSPI market from the 7th of last month to today.

However, verbal intervention by the authorities immediately after the market opened and the supply of export companies' dollar selling (negotiation) likely limited further increases in the exchange rate.

Deputy Prime Minister and Minister of Economy and Finance Goo Yoon-cheol stated at a market situation review meeting presided over by him this morning, "We will take immediate necessary measures against excessive imbalances."

The news of the ceasefire agreement between Israel and Lebanon, which was reported before the market opened, is also analyzed to have prevented further increases in the exchange rate.

The dollar index, which measures the value of the U.S. dollar against a basket of six major currencies, stood at 99.432, down 0.09% from the previous day, but remains at a high level.

The yen/dollar exchange rate was 159.860 yen, down 0.09%, but close to 160 yen.

The won/yen cross exchange rate was 957.35 won per 100 yen, an increase of 8.29 won from the closing price as of 3:30 PM on the previous trading day.