USD-KRW Falls to 1,465.20 as US-Iran Tensions Ease, Oil Prices Decline

According to Yonhap Infomax, on July 28, the USD-KRW exchange rate fell to 1,465.20, down 3.30 from the previous close of 1,468.50, as geopolitical tensions eased and crude oil prices declined. The pair has dropped more than 100 won since early July, when it peaked at 1,559.20.

The decline was supported by a cessation of US-Iran military hostilities as of July 24 and a sharp drop in international oil prices; WTI crude for September delivery fell 7.50% to $82.61 per barrel, while Brent crude dropped 8.70% to $88.36. However, sustained dollar strength and expectations of Federal Reserve rate increases limited further weakness, while foreign investor selling of Korean stocks, with net outflows of 3.2 trillion and 2.8 trillion KRW on July 24 and 27 respectively, provided support at lower levels.