The South Korean won (KRW) weakened against the US dollar (USD) on Thursday, reversing course after a significant gain in the previous session. This movement occurred as investors awaited US President Donald Trump’s address concerning the ongoing Middle East conflict.
The won opened trading at 1,512.2 KRW per USD, a decrease of 10.9 KRW compared to the previous day’s closing rate.
The Korean currency has experienced increased volatility recently, mirroring developments in the Middle East. These events have contributed to rising global oil prices and growing concerns regarding inflation and a potential economic slowdown.
On Wednesday, the won experienced a notable surge of nearly 30 KRW, rebounding from a 17-year low. This recovery was fueled by expectations of a potential resolution to the conflict, which began in late February following strikes on Iran by the US and Israel.
President Trump was scheduled to deliver a public statement on the Middle East conflict at 10 a.m. ET.
In a Wednesday interview with Reuters, Trump indicated that the United States would be withdrawing from Iran “pretty quickly” but reserved the right to return for targeted operations if necessary.
Trump also posted on Truth Social, claiming that Iran’s “new regime president” had requested a ceasefire. However, Iran’s foreign ministry refuted this claim, labeling it “false and baseless.”
Despite continuing tensions between the US and Iran, the US dollar generally weakened. The dollar index, which measures the USD against six major currencies, declined to a low of 99.296 overnight.
The Korea Composite Stock Price Index (KOSPI) initially opened 1.33 percent higher and continued to climb. In the first 15 minutes of trading on Thursday, the KOSPI rose 63.11 points, or 1.15 percent, reaching 5,541.81.
