The South Korean won gained sharply against the US dollar on Tuesday, recovering from a 17-year low, after US President Donald Trump delayed strikes on Iranian energy infrastructure. The move came amid talks cited as 'constructive' for ending the Middle East conflict. The rebound followed volatility from the Strait of Hormuz blockade disrupting oil supplies.
Financial data flashed on screens in the dealing room of Hana Bank in central Seoul on Tuesday as the Korean won opened at 1,490.9 per dollar, up 26.4 won from Monday's 1,517.3—the weakest level since March 9, 2009, during the global financial crisis. Heightened volatility has gripped domestic and global foreign exchange and stock markets since U.S.-Israeli strikes on Iran began late last month, escalating into a broader regional conflict. The Strait of Hormuz has been effectively shut since the conflict's start, disrupting global oil supplies. On Monday (U.S. time), Trump announced a five-day postponement of threatened strikes on Iranian energy facilities, citing “constructive” discussions on ending the war in the Middle East. Earlier, he had warned that the U.S. would “obliterate” Iran's power plants unless Tehran lifted its blockade of the Strait within 48 hours, with the deadline expiring late Monday. The won's sharp rebound reflects market hopes for de-escalation amid these developments.
