As hopes for a second round of negotiations between the U.S. and Iran faded, the USD-KRW exchange rate once again neared 1,480 KRW (about 1 USD).
On Tuesday morning, the Seoul foreign exchange market opened with the USD-KRW exchange rate at 1,479.5 KRW (about 1 USD), an increase of 11.0 KRW (about 0.0074 USD) from the previous week’s closing price.
This uptick appears to be driven by rising oil prices and a risk-averse sentiment, fueled by growing concerns over the potential breakdown of U.S.-Iran talks.
Despite President Donald Trump’s announcement extending the two-week ceasefire as it neared expiration, Iran’s decision to abstain from the second round of negotiations has reignited uncertainty in the market.
Lee Min-hyuk, an economist at KB Kookmin Bank, commented on the situation: As tensions between the U.S. and Iran escalate, the possibility of a breakdown in the second round of negotiations is increasing. If talks definitively collapse, it can expect to see a more significant rise in exchange rates. Lee added that today, the exchange rate is likely to open higher and fluctuate as the market closely monitors news related to the negotiations, seeking direction based on developments.