Won Dips Amid Middle East Tensions and Bargain Buying

The Korea won experienced a slight dip against the US dollar on September 1st, reaching 1,368.3 won as of 9am that morning. This represents a 0.02% decrease from the previous day's closing price.

The drop is attributed to increased demand for dollars due to bargain buying, with investors seeking to purchase at low prices after the rate hit the 1,360-won level for the first time in 13 months on August 31st.

Mina Kyung-won of Woori Bank noted that 'on this day, the perception of an excessive drop is likely to work, leaving ample room for a reversal-type buy-in.'

The situation in the Middle East has also contributed to the won's decline. Tensions between the US and Iran have escalated following an airstrike on Larak Island in the Strait of Hormuz, leading to increased demand for safe-haven assets like the dollar.