Summary
- The won-dollar exchange rate closed at 1,495.2 won, down 22.1 won from the previous session.
- It said that President Trump’s remarks about positive negotiations with Iran led to a sharp drop in oil prices and a 2.74% rise in the KOSPI.
- However, Iran’s denial of talks kept volatility elevated, with the won-dollar exchange rate again breaking above 1,500 won intraday.
Forecast Trend Report by Period
Trump: "Positive negotiations with Iran"
Oil plunges; KOSPI rises
Volatility persists after Iran denial
Topped 1,500 won intraday
With U.S. President Donald Trump postponing a strike on Iranian power plants, the won-dollar exchange rate fell by more than 22 won. Still, it briefly broke above the 1,500 won level during the session, underscoring ongoing volatility.
In the Seoul FX market on the 24th, the won-dollar exchange rate stood at 1,495.2 won at 3:30 p.m., down 22.1 won from the previous session’s afternoon close.
The won-dollar rate had previously logged weekly closes above 1,500 won for three consecutive sessions—1,501.0 won on the 19th, 1,500.6 won on the 20th, and 1,517.3 won on the 21st. The pullback is attributed to remarks by President Trump that he is in positive negotiations with Iran.
Lee Min-hyuk, an economist at KB Kookmin Bank, said, "News that the Iran attack was called off sent oil prices sharply lower, which was positive for the won," adding, "With quarter-end exporter dollar selling expected, the won is likely to face additional appreciation pressure."
On the 23rd (local time), with about 12 hours left before the deadline of an ultimatum he presented to Iran, President Trump claimed he had held "productive talks" with Iran and decided to postpone an attack on power plants for five days.
As Israel, which had maintained a hardline stance toward Iran, also issued somewhat conciliatory remarks, expectations spread that the war could end.
In response, all three major U.S. stock indexes surged to close higher, and April West Texas Intermediate (WTI) futures fell 10.3% to $88.13, helping global oil prices regain stability. The KOSPI also rose 2.74% on the day.
However, market volatility remains as Iran denied President Trump’s remarks, saying there had been no negotiations or dialogue with the United States.
After opening at 1,490.9 won, the won-dollar exchange rate at one point in the afternoon broke back above 1,500 won as the stock market wobbled.
Choi Soo-jin, Hankyung.com reporter naive@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
