South Korean won rises as exporters sell dollars, but oil price worries linger
The won strengthened against the dollar after exporters sold greenbacks, though gains were capped by higher oil prices and fading hopes for Hormuz talks.
On Tuesday, the South Korean won appreciated to 1,356.7 per U.S. dollar, gaining 8.4 won from the prior trading day’s close. The rise was driven by local exporters converting their dollar earnings into won, a pattern that typically occurs at the end of each month. However, the currency’s upward momentum was restrained as oil prices climbed and optimism faded for the reopening of Strait of Hormuz negotiations.
During the regular trading session, foreign investors net-sold about 2.9 trillion won (approximately US$2.14 billion) of Korean equities, causing the Korea Composite Stock Price Index to fall 0.27% to close at 6,870.81. The mixed signals highlight the interplay between export-driven currency flows and broader geopolitical-linked commodity price risks.
Why it matters
The move shows how export activity and oil-price volatility can quickly affect South Korea’s currency and stock market.
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