The South Korean won experienced a significant surge against the US dollar on Wednesday, rebounding from a sharp decline in the previous session. This recovery followed signals from US President Donald Trump suggesting a potential resolution to the ongoing conflict in the Middle East.
The won opened trading at 1,508.5 per dollar, a notable increase of 21.6 won compared to the previous session’s closing rate of 1,530.1.
Tuesday’s exchange rate had marked the lowest point since March 9, 2009, when the won closed at 1,549 during the global financial crisis.
As the conflict continues, President Trump stated on Tuesday (US time) that he anticipates US forces withdrawing from Iran within “two or three weeks.” He added, “All I have to do is leave Iran, and we’ll be doing that very soon, and they’ll come tumbling down.”
According to foreign media reports, Iranian President Masoud Pezeshkian informed European Council President Antonio Costa that Tehran possesses the “necessary will” to end the conflict, contingent upon guarantees from its adversaries that it will not reignite.
Overnight, the dollar index, which tracks the US currency’s performance against six major currencies, dipped below the 100 level. US stocks also saw substantial gains as investors reacted positively to these developments.
The benchmark Korea Composite Stock Price Index (KOSPI) jumped by 4.88 percent to reach 5,299.02 in the first 15 minutes of trading on Wednesday.
