The USD-KRW exchange rate rose to 1,504.60 won in the Seoul foreign exchange market on the morning of the 13th at 11:02 AM, up 3.20 won from the previous trading day's close of 1,501.40 won. The increase followed global dollar flows as the exchange rate re-entered the 1,500 won range. Escalating tensions between the United States and Iran strengthened risk-off sentiment in markets, with Korean stock indices falling 5-6% and the dollar index rising to around 101.13 following the Asian market opening.
USD-KRW Exchange Rate Reaches 1,504.60 Won on the 13th
The exchange rate stood at 1,504.60 won at 11:02 AM on the 13th, representing a 6.10 won increase compared to the early morning close of 1,498.50 won on the 11th at 6 AM. The dollar index expanded its gains to around 101.13 after Asian markets opened. Korean stock indices declined 5-6% during the same period.
Iran Foreign Ministry Condemns US Actions on the 12th
The Iranian Foreign Ministry issued a statement on the 12th (local time) strongly condemning what it described as aggressive attacks by the United States against Iran over the previous 24 hours. The ministry stated that "the US regime has blatantly violated nearly every element of the agreement, despite only 25 days having passed since the signing of the memorandum of understanding (MOU) for ending the war." The unresolved conflict between the two countries contributed to heightened risk aversion in global markets.
SK Hynix ADR Dollar Supply Expectations Remain Unconfirmed
Market expectations for dollar supply from SK Hynix's American Depositary Receipt (ADR) listing, which had been significant since last week, have not yet materialized in observable volumes. SK Hynix shares fell more than 10% on the 13th. The anticipated additional dollar inflows from the ADR listing have not been clearly confirmed in the market.
July Exports Reach Record $29.8 Billion
According to the Korea Customs Service on the 13th, exports from the 1st to the 10th of this month totaled $29.8 billion, a 53.9% increase compared to the same period last year. This represents the largest export volume on record for a 1-10 day period in early July. The strong export performance provided a favorable factor for the Korean won.
Commercial Bank Dealer Cites Global Dollar Flow Impact
A forex dealer at a commercial bank stated on the 13th that "recently, the impact of global dollar flows has been greater than foreign stock selling." The dealer explained that "additional dollar supply related to SK Hynix would need to emerge for the exchange rate to decline further, but related volumes are not yet visible." The dealer described the current movement as "the USD-KRW following the global dollar strength that reflects Middle Eastern geopolitical risks."
Other Currency Movements on the 13th
The People's Bank of China (PBOC) set the yuan higher on the morning of the 13th. The USD-CNY reference rate was fixed at 6.7972 yuan, down 0.0017 yuan (0.03%) from the previous session. The USD-JPY exchange rate rose 0.15% to 161.964 yen, while the EUR-USD rate declined 0.16% to 1.13962 dollars. The JPY-KRW cross rate increased 0.19% to 928.71 won per 100 yen, and the CNY-KRW rate rose 0.34% to 221.82 won. The offshore USD-CNH rate remained flat at 6.7820 yuan.
FAQ
What caused the USD-KRW exchange rate to rise to 1,504.60 won on the 13th?
The exchange rate increased due to global dollar strength driven by escalating US-Iran tensions and heightened risk-off sentiment in markets. The dollar index rose to around 101.13, while Korean stock indices fell 5-6%.
Why did SK Hynix ADR listing not provide expected dollar supply?
While market expectations for dollar inflows from SK Hynix's ADR listing had been significant since last week, the anticipated additional dollar supply has not yet been clearly confirmed in observable market volumes as of the 13th, particularly as SK Hynix shares fell more than 10%.
How did Korean exports perform in early July?
According to Korea Customs Service data released on the 13th, exports from July 1-10 totaled $29.8 billion, representing a 53.9% increase compared to the same period last year and marking the largest export volume on record for a 1-10 day period in early July.
