South Korean Won Gains on US-Iran Deal Hopes

USDKRW −0.78% USDKRW.TV +1.12% USDKRW −0.77% The South Korean won strengthened to around 1,510 per dollar, recovering after touching its weakest level since March 2009 near 1,520, as easing geopolitical tensions boosted appetite for risk-sensitive Asian assets. Sentiment improved after signs of progress in US-Iran negotiations fueled expectations that the Strait of Hormuz could reopen, helping crude oil prices tumble more than 4% and easing concerns over global energy supply disruptions and inflation pressures. Additional support for the won came from continued optimism surrounding South Korea’s semiconductor sector, with strong AI-driven demand, record KOSPI trading activity, and robust chip exports reinforcing confidence in the country’s export outlook. Investor sentiment was also lifted by plans to allow foreign investors to trade South Korean ETFs directly, a move expected to support additional overseas capital inflows into local financial markets.