USD/KRW Falls to 1,497.50 Won as U.S.-Iran Tensions Escalate on July 14

According to Yonhapinfomax, the USD/KRW exchange rate closed at 1,497.50 won on July 14, down 5.90 won from the previous day's close of 1,503.40 won. The currency pair had touched a low of 1,491.80 won during London trading.

The weakness in the dollar against the Korean won reflected escalating U.S.-Iran tensions. President Trump announced plans to reinstate Iran sanctions and stated the U.S. would receive 20% compensation on all cargo passing through the Strait of Hormuz. Iran's armed forces warned they would not permit U.S. involvement in the strait and would respond firmly. The U.S. Central Command confirmed it initiated three consecutive nights of strikes against Iran on July 14 morning. Additionally, hawkish remarks from Federal Reserve official Christopher Waller supported dollar strength, offsetting some of the won's gains.