Won Falls to 1,510 Range Against Dollar Amid Foreign Stock Buying and Hopes for End of U.S.-Iran Conflict

On June 12, the won-dollar exchange rate fell to the 1,510 won range for the first time in three days, driven by net buying of stocks by foreign investors and growing expectations for an end to the conflict between the United States and Iran.

In the Seoul foreign exchange market, the daytime closing price of the won against the U.S. dollar (as of 3:30 p.m.) was recorded at 1,519.8 won, down 9.1 won from the previous trading day.

This marks the lowest level in terms of daytime closing prices in three days, following the 1,512.1 won recorded on June 9.

However, the exchange rate has remained in the 1,500 won range for 19 consecutive trading days.

The exchange rate opened at 1,518.0 won today and fluctuated in the low 1,520 won range without significant volatility.

The intraday high was 1,522.4 won, and the low was 1,517.0 won, resulting in a daily fluctuation range of 5.4 won.

This volatility range was the smallest since April 28 (3.6 won).

While the exchange rate had fluctuated by more than 10 won, and at times over 20 won, during intraday trading from May 29 to June 10, it has narrowed its volatility for two consecutive days, including today, following the previous trading day (7.2 won).

Foreign investors, who had been exerting upward pressure on the exchange rate with a "selling" streak in the domestic securities market, turned to net buying for the first time in 25 trading days, leading the decline in the exchange rate.

The scale of net buying by foreign investors today was 2.1063 trillion won.

This was more than 600 billion won higher than the net selling recorded the previous day (1.464 trillion won).

In addition, the revival of risk-on sentiment following reports that the war between the U.S. and Iran is nearing an end also contributed to the decline in the exchange rate.

U.S. President Donald Trump, who had previously warned of airstrikes against Iran for three consecutive days, stated on Truth Social, "I have canceled the airstrikes and bombings against Iran that were scheduled for this evening."

He later met with reporters at the White House and said that the peace negotiations with Iran were in the final stage of document coordination and that a signing ceremony could be held in Europe this weekend.

Foreign exchange authorities, who had been issuing repeated messages to strengthen management against the soaring exchange rate, expressed expectations for exchange rate stability.

Shin Hyun-song, Governor of the Bank of Korea, stated at the 76th anniversary ceremony of the Bank of Korea today, "We believe the won-dollar exchange rate will gradually stabilize as the large current account surplus acts as a factor to increase demand for the won through corporate tax payments and the expansion of domestic investment."

He added, "If this happens, we can confirm once again that there is a factor of fundamental value, in addition to the flow of the exchange rate."

As of 3:30 p.m., the dollar index, which measures the value of the dollar against six major currencies, was 99.795, down 0.20 from the reference price at the same time the previous day.

The won-yen cross rate was 948.33 won per 100 yen, down 3.78 won from the reference price at the same time the previous trading day (952.11 won).

The yen-dollar exchange rate fell 0.30 yen to 160.268 yen.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.