Exchange Rate Stagnates in the 1,430-Won Range Amid Crossed Middle East Risk Relief and Bargain Hunting

The won-dollar exchange rate remained stagnant around the 1,430-won mark today (the 4th) as the easing of geopolitical risks originating from the Middle East and bargain-hunting demand intersected.

In the Seoul foreign exchange market, the won-dollar exchange rate stood at 1,432.5 won as of 3:30 PM, up 2.7 won.

The exchange rate started at 1,431.8 won today and rose to 1,433.6 won around 9:00 AM.

After hitting a low of 1,421.0 won around 11:10 AM, it rebounded and traded around the 1,430-won level throughout the day.

The exchange rate remained near flat as variables such as plunging oil prices following the easing of Middle Eastern geopolitical risks, bargain-hunting demand, and net selling by foreigners intersected.

U.S. President Donald Trump had warned of a massive airstrike against Iran last weekend before canceling it and shifting toward resuming dialogue.

Speaking to reporters at the White House on the 3rd (local time), he said, "We are currently talking with Iran. This is the last chance," and stated that discussions were underway to completely reopen the Strait of Hormuz by the 4th.

As a result, pressure from high oil prices has also eased.

The closing price for October delivery Brent crude futures on the ICE Futures exchange dropped 4.7% from the previous trading day to 83.77 dollars per barrel, while the closing price for September delivery West Texas Intermediate (WTI) crude futures on the New York Mercantile Exchange fell 5.1% to 80.34 dollars per barrel.

The inflow of funds raised through SK Hynix's American Depositary Receipts (ADRs) was also a factor pushing down the exchange rate.

However, analyses suggest that because the exchange rate was approaching 1,560 won just a month ago, it is stimulating bargain-hunting sentiment and preventing it from falling below the 1,420-won range.

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