The USD-KRW exchange rate fell on the 6th, reflecting global dollar weakness and expectations for the reopening of the Strait of Hormuz. At 6 AM in the foreign exchange market, the USD-KRW rate traded at 1,422.50 won, down 2.00 won from the previous trading day's Seoul close (1,424.50 won) and down 7.10 won compared to 6 AM 24 hours earlier (1,429.60 won). The decline followed comments by US Treasury Secretary Scott Bessent regarding the Korean won and continued net stock purchases by foreign investors, who bought 1.7 trillion won worth of shares in the domestic market as the KOSPI rose 3.76%. Geopolitical developments, including an Iran-Oman agreement on a joint waterway in the Strait of Hormuz, contributed to market sentiment.
USD-KRW Rate Falls to 1,422.50 Won Amid Stock Market Rally
The USD-KRW exchange rate started trading at 1,430.50 won and reached an intraday low of 1,420.80 won at 12:09 PM the previous day. The move lower was driven by the impact of US Treasury Secretary Scott Bessent's comments related to the Korean won and sustained foreign net buying in domestic equities. The KOSPI rose 3.76% the previous day, while foreign investors net purchased 1.7 trillion won worth of stocks in the Korean market.
Following the intraday low, bargain-hunting buying emerged, and the exchange rate entered a range-bound session in the 1,420 won area. During the London and New York sessions, the USD-KRW rate remained largely within this range.
Iran and Oman Agree on Joint Waterway in Strait of Hormuz
According to Iran's IRNA news agency, Iran agreed with Oman to establish a joint waterway in the Strait of Hormuz. However, Iranian officials clarified that the new route would pass mostly through Iranian territorial waters and does not signify a full reopening of the strait.
Regarding negotiations with the United States, Iranian Deputy Foreign Minister Kazem Gharibabadi stated, "It is true that about 4 to 5 days after the start of the new conflict, the US side sent a message requesting negotiations and problem-solving," but added, "Recently, Iran has not conducted any negotiations with the United States."
Pro-Iranian Yemeni Houthi rebels claimed to have attacked a Saudi Arabian oil tanker in the Gulf of Aden. Brent crude oil futures closed 0.11% higher at $79.45.
Global Market Indicators Show Mixed Signals
According to the ADP National Employment Report, private sector employment increased by 44,000 in the previous month compared to the prior month, falling short of market expectations (+70,000).
The euro-dollar exchange rate briefly hit its highest level since mid-June, exerting downward pressure on the dollar. At the same time, the Dollar Index stood at 99.690.
The USD-JPY exchange rate was 157.727 yen, and the EUR-USD rate was 1.15526 dollars. The offshore USD-CNY (CNH) rate was 6.7451 yuan.
FAQ
What was the USD-KRW exchange rate at 6 AM on the 6th?
At 6 AM in the foreign exchange market on the 6th, the USD-KRW rate traded at 1,422.50 won, down 2.00 won from the previous trading day's Seoul close (1,424.50 won) and down 7.10 won compared to 6 AM 24 hours earlier (1,429.60 won).
What did Iran and Oman agree on regarding the Strait of Hormuz?
According to Iran's IRNA news agency, Iran agreed with Oman to establish a joint waterway in the Strait of Hormuz. Iranian officials clarified that the new route would pass mostly through Iranian territorial waters and does not signify a full reopening of the strait.
How much did foreign investors buy in the Korean stock market?
Foreign investors net purchased 1.7 trillion won worth of stocks in the domestic market, contributing to a 3.76% rise in the KOSPI the previous day.
