The South Korean won has decreased to the 1480 won level against the US dollar amid expectations of a ceasefire in the Iran conflict, while oil prices have also started to decline.
On the 20th, the exchange rate of the South Korean won to the US dollar has decreased by more than 10 won, trading at around the 1480 won level following the previous day's surge to a 17-year high. The Brent crude oil futures price is currently trading around $106 per barrel. The Seoul foreign exchange market opened with the dollar at 1492 won, down 9.0 won from the previous day's closing price, and during the morning session, it continued to fluctuate, trading at 1488.00 won shortly after the market opened. The previous day, the exchange rate had reached a peak of 1505 won, marking the highest level since the global financial crisis in 2009.
Analysts attribute the recent drop in the won-dollar exchange rate to hopes for a swift resolution of the Iran conflict. President Donald Trump recently urged Israeli Prime Minister Benjamin Netanyahu during a press conference to refrain from further attacks, suggesting that the conflict could conclude sooner than anticipated. Following these comments, the dollar index, which measures the dollar's value against six major currencies, fell below the 99 mark to 98.967. This shift reflects increased market optimism regarding geopolitical tensions.
Additionally, the upward trend in oil prices has shown signs of slowing down. As of 9:26 AM KST, Brent crude futures were trading at $107.01 per barrel, while West Texas Intermediate (WTI) crude futures were at $93.90. Both markers have seen declines of about $1-2 from their previous closing prices. On the day before, Brent crude had nearly approached the $120 mark during trading, indicating a significant fluctuation in the oil market amidst the evolving geopolitical situation.
