Employees celebrate in the dealing room at Hana Bank headquarters in Seoul after the KOSPI topped 7,000 on May 6. [Photo=Yonhap]
South Korea’s won strengthened early Tuesday as local stocks rallied, with the KOSPI breaking above 7,000 amid expectations of easing geopolitical risks in the Middle East.
In Seoul’s foreign exchange market, the won was trading at 1,461.4 per U.S. dollar as of 9:23 a.m., according to the market.
The exchange rate opened at 1,465.8 won, up 3.0 won from the previous session, then moved lower.
Clashes have continued in the Strait of Hormuz, but the U.S. confirmed that a cease-fire agreement with Iran remains in place, feeding hopes that tensions may ease.
Overnight, U.S. stocks rose as Middle East risk concerns eased and expectations for artificial intelligence-driven demand lifted semiconductor shares. In New York on May 5 (local time), the S&P 500 and the Nasdaq both set record highs. The S&P 500 gained 0.81% to 7,259.22, and the Nasdaq rose 1.03% to 25,326.13.
The KOSPI moved above 7,000 immediately after the open. With foreign funds flowing into local shares, led by semiconductors, the market is expected to support the won’s strength.
Min Kyeong-won, an economist at Woori Bank, said the exchange rate is expected to fall during the session, tracking Monday’s closing level, as risk appetite improves on reduced fears of a renewed full-scale U.S.-Iran conflict. He added that the stock-market rally is a factor that can tilt supply and demand toward net selling, led by offshore selling.
In Seoul’s foreign exchange market, the won was trading at 1,461.4 per U.S. dollar as of 9:23 a.m., according to the market.
The exchange rate opened at 1,465.8 won, up 3.0 won from the previous session, then moved lower.
Clashes have continued in the Strait of Hormuz, but the U.S. confirmed that a cease-fire agreement with Iran remains in place, feeding hopes that tensions may ease.
Overnight, U.S. stocks rose as Middle East risk concerns eased and expectations for artificial intelligence-driven demand lifted semiconductor shares. In New York on May 5 (local time), the S&P 500 and the Nasdaq both set record highs. The S&P 500 gained 0.81% to 7,259.22, and the Nasdaq rose 1.03% to 25,326.13.
The KOSPI moved above 7,000 immediately after the open. With foreign funds flowing into local shares, led by semiconductors, the market is expected to support the won’s strength.
Min Kyeong-won, an economist at Woori Bank, said the exchange rate is expected to fall during the session, tracking Monday’s closing level, as risk appetite improves on reduced fears of a renewed full-scale U.S.-Iran conflict. He added that the stock-market rally is a factor that can tilt supply and demand toward net selling, led by offshore selling.
* This article has been translated by AI.
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