Won Starts Lower on Hopes of Easing Middle East Tensions, Fluctuates Around 1,490 Level

According to The Financial News, the Korean won opened lower against the U.S. dollar in early trading, pressured by falling international oil prices and a weaker greenback.
On the Seoul Foreign Exchange Market on the 17th, the won-dollar exchange rate opened at 1,490.0 won, down 7.5 won from the previous session. It has since been fluctuating within the 1,490 won range.
Overnight, expectations that tensions in the Middle East may ease were reflected in the markets, partially softening risk-off sentiment. Hopes for behind-the-scenes talks between the United States of America (US) and the Islamic Republic of Iran, along with views that a blockade of the Strait of Hormuz could be lifted, are seen as improving investor sentiment.
Against this backdrop, the New York Stock Exchange (NYSE) also finished higher. The Dow Jones Industrial Average (DJIA) rose 0.83%, the S&P 500 Index gained 1.01%, and the NASDAQ Composite Index (NASDAQ) advanced 1.22%.
International oil prices moved lower as well. May futures for Brent Crude Oil settled at 100.21 dollars per barrel, down 2.84% from the previous day, while April futures for West Texas Intermediate (WTI) crude oil fell 5.28% to close at 93.50 dollars.
The recent strength of the dollar has also eased somewhat. The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, stood around 99.585, a slight decline from the previous day when it had climbed above the 100 mark.
However, financial institutions note that uncertainty surrounding the Middle East situation persists, meaning exchange rate volatility could continue. Yu-jeong Lee, a researcher at KEB Hana Bank, said, "As risk aversion and dollar strength have eased somewhat, the exchange rate is showing a downward reversal," but added, "Given the lingering uncertainty over the Middle East situation, the downside is likely to remain limited."


imne@fnnews.com Reporter Ye-ji Hong Reporter