[Photo=Yonhap News Agency]
The South Korean won strengthened into the 1,440s against the U.S. dollar for the first time in about 2 1/2 months as expectations of easing Middle East tensions revived risk appetite.
In Seoul trading, the won was quoted at 1,447.9 per dollar as of 9:20 a.m. Thursday.
The exchange rate opened at 1,448.6, down 6.5 won from the previous session, and fell into the 1,440s during intraday trading. It was the first time the rate returned to the 1,440s since Feb. 27, just before the outbreak of the Middle East war.
Sentiment improved after renewed expectations for a final agreement between the United States and Iran, lifting risk-on moves across global markets.
Overnight, U.S. President Donald Trump said in a media interview that he had “very good talks” with Iran over the past 24 hours and that “there is a very big chance” of reaching a deal.
U.S. stocks rose broadly on optimism over negotiations to end the war. The Dow Jones Industrial Average gained 1.24%, the S&P 500 rose 1.46% and the Nasdaq composite climbed 2.02%.
The dollar index, which measures the greenback against six major currencies, was up 0.021 at 98.029.
Min Kyeong-won, an economist at Woori Bank, said markets are “betting on the possibility of a deal,” adding that continued foreign inflows into South Korean stocks could spur offshore selling and increase downward pressure on the exchange rate.
She said demand for dollars from importers’ payments and residents’ currency conversions for overseas stock investment is supporting the downside. With Wall Street hitting fresh highs, she added, demand could return as residents seek to buy more U.S. stocks.
In Seoul trading, the won was quoted at 1,447.9 per dollar as of 9:20 a.m. Thursday.
The exchange rate opened at 1,448.6, down 6.5 won from the previous session, and fell into the 1,440s during intraday trading. It was the first time the rate returned to the 1,440s since Feb. 27, just before the outbreak of the Middle East war.
Sentiment improved after renewed expectations for a final agreement between the United States and Iran, lifting risk-on moves across global markets.
Overnight, U.S. President Donald Trump said in a media interview that he had “very good talks” with Iran over the past 24 hours and that “there is a very big chance” of reaching a deal.
U.S. stocks rose broadly on optimism over negotiations to end the war. The Dow Jones Industrial Average gained 1.24%, the S&P 500 rose 1.46% and the Nasdaq composite climbed 2.02%.
The dollar index, which measures the greenback against six major currencies, was up 0.021 at 98.029.
Min Kyeong-won, an economist at Woori Bank, said markets are “betting on the possibility of a deal,” adding that continued foreign inflows into South Korean stocks could spur offshore selling and increase downward pressure on the exchange rate.
She said demand for dollars from importers’ payments and residents’ currency conversions for overseas stock investment is supporting the downside. With Wall Street hitting fresh highs, she added, demand could return as residents seek to buy more U.S. stocks.
* This article has been translated by AI.
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