The USD-KRW exchange rate sharply declined during the London trading session on the 13th, briefly falling to the early 1,490 won range. As of 5:40 PM, the exchange rate stood at 1,496.00 won, down 5.40 won from the previous trading day's Seoul close of 1,501.40 won. The decline accelerated after Iran's Foreign Ministry spokesperson confirmed ongoing mediation efforts by Qatar, Oman, and Pakistan between the United States and Iran, easing geopolitical tensions that had supported the dollar earlier in the session.
USD-KRW Reaches Intraday High of 1,508.90 Won Before Reversing
During Seoul trading hours, the USD-KRW exchange rate stood at 1,503.40 won as of 3:30 PM, up 2.00 won from the previous day's close. Middle East tensions drove international oil prices and global dollar strength higher, while foreign investors net sold over 1.6 trillion won in the KOSPI market. The exchange rate climbed to 1,508.90 won at approximately 3:12 PM.
Below the 1,510 won level, expectations of capital inflows from SK Hynix's American Depositary Receipt (ADR) listing and caution regarding potential foreign exchange authority intervention limited further upside.
Hanwha Ocean Sells Over $2 Billion in Currency Forwards
Around 3:30 PM, Hanwha Ocean sold over $2 billion in currency forwards, reducing the USD-KRW exchange rate's gains. Subsequently, at approximately 4:50 PM, the dollar index shifted to weakness, expanding downward pressure on USD-KRW.
Iran Mediation News Weakens Dollar Index to 100.8 Range
According to major foreign media, Iran's Foreign Ministry spokesperson stated on the 13th that "Qatar, Oman, and Pakistan have been continuing efforts to mediate between the United States and Iran in recent days," adding that "Tehran is maintaining contact with all three countries and discussions are ongoing."
Markets interpreted this as somewhat hopeful news. Following the announcement, the dollar index slipped from above 101 to the 100.8 range, and August delivery West Texas Intermediate (WTI) crude oil retreated from the $75 per barrel range to the $73 per barrel level after earlier surging.
USD-KRW fell to 1,492.90 won at approximately 5:12 PM, the lowest level since May 18.
At the same time, USD-JPY traded at 162.122 yen, up 0.394 yen from the previous session, while EUR-USD traded at 1.14378 dollars, up 0.00240 dollars. Offshore USD-CNY rose to 6.7827 yuan.
FAQ
What caused the USD-KRW exchange rate to fall on the 13th?
The USD-KRW exchange rate declined from 1,501.40 won to 1,496.00 won as of 5:40 PM on the 13th, primarily driven by Iran's Foreign Ministry spokesperson confirming ongoing mediation efforts by Qatar, Oman, and Pakistan between the United States and Iran. This news weakened the dollar index from above 101 to the 100.8 range and reduced oil prices, reversing earlier gains driven by Middle East tensions.
What was the lowest level reached by USD-KRW on the 13th?
USD-KRW fell to 1,492.90 won at approximately 5:12 PM on the 13th, marking the lowest level since May 18. The decline occurred after Hanwha Ocean sold over $2 billion in currency forwards around 3:30 PM and geopolitical tensions eased following Iran mediation news.
