The USD-KRW exchange rate reversed course during the London trading session, rising after earlier declines as Middle East tensions escalated. At 5:04 PM, the rate stood at 1,492.20 won, down 0.80 won from the previous Seoul session close, but up 1.70 won from the New York close at 6 AM. The rate had dropped to 1,484.70 won at 3:30 PM before surging to 1,493.20 won by 4:27 PM, turning positive against the prior Seoul close of 1,493.00 won. An Iranian government spokesman stated that over 30 civilians died in recent US airstrikes, while AFP reported that the Iranian military said 7 soldiers were killed in the strikes. The reversal reflected heightened risk aversion as US-Iran tensions showed no signs of easing.
USD-KRW Rate Reverses to 1,493.20 Won During London Session
The USD-KRW exchange rate recorded 1,492.20 won at 5:04 PM, down 0.80 won from the previous Seoul session close. However, the rate rose 1.70 won compared to the New York close at 6 AM. The exchange rate had marked 1,484.70 won at 3:30 PM before climbing to 1,493.20 won by 4:27 PM—just one hour later—turning positive against the previous Seoul close of 1,493.00 won. The intraday reversal occurred as global dollar strength linked to Middle East geopolitical developments affected forex markets.
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USD-KRW tick chart. Source: Yonhap Infomax
Iranian Officials Report Casualties from US Airstrikes
An Iranian government spokesman stated that over 30 civilians died in recent US airstrikes. AFP reported that the Iranian military said 7 soldiers were killed in the US airstrikes. The casualty reports emerged as tensions between the United States and Iran continued without signs of de-escalation. Risk aversion sentiment gained strength in global markets following these developments.
Brent Crude Rises to $86 Per Barrel
International oil prices rose across the board. Brent crude futures climbed to the $86 per barrel range. The oil price increase coincided with the exchange rate reversal and dollar index movements, indicating a market response to geopolitical factors.
Forex Dealers Cite Geopolitical Factors and Export Dollar Selling
A bank forex dealer said, "Looking at the dollar index and international oil prices reacting together, it appears to be a geopolitical factor. It doesn't seem to be a won-specific issue." A securities firm forex dealer stated, "Export companies have been selling a lot of dollars during the Seoul session, but after the Seoul session ends, it seems we can only reflect global factors." The dealer commentary highlighted the shift from domestic supply-demand dynamics during Seoul trading hours to global risk sentiment in offshore sessions.
Dollar Index and Other Currency Pairs React
The dollar index reduced its decline from the Asian session, standing at 100.877 at the same time. The USD-JPY exchange rate rose 0.119 yen from the previous session to 162.256 yen. The EUR-USD rate increased 0.00083 dollars to 1.14263 dollars. The JPY-KRW cross rate fell 0.85 won to 919.53 won per 100 yen. The CNY-KRW rate declined 0.82 won to 219.55 won. The offshore USD-CNY (CNH) rate rose to 6.7714 yuan.
FAQ
What caused the USD-KRW exchange rate to reverse during the London session?
The USD-KRW rate reversed from 1,484.70 won at 3:30 PM to 1,493.20 won by 4:27 PM due to heightened Middle East tensions. An Iranian government spokesman reported over 30 civilian deaths from recent US airstrikes, and AFP reported 7 Iranian soldiers killed, triggering global dollar strength and risk aversion.
How did international oil prices react to the geopolitical developments?
Brent crude futures rose to the $86 per barrel range. A bank forex dealer noted that the simultaneous reaction of the dollar index and international oil prices indicated a geopolitical factor rather than a currency-specific issue.
