Seoul: The South Korean won advanced to a nearly two-week high Monday after the United States and Iran agreed on a preliminary deal to end the monthslong conflict that has disrupted the global economy. The won was quoted at 1,511.1 won per dollar, up 8.7 won from the previous session's close, as of 3:30 p.m., and reaching the highest level since June 1 in terms of onshore settlement.
According to Yonhap News Agency, the won opened at 1,511.4 won per dollar after U.S. President Donald Trump announced that Washington and Tehran have reached a peace deal. The agreement, made public via social media, raised expectations that the war in the Middle East is nearing its end and the Strait of Hormuz would soon be reopened to ships. Although the stance from Israel remains unclear, global oil prices dropped on the announcement that was also confirmed by Tehran.
The won's strength also came after foreign investors turned to net buyers of local stocks for the first time in 25 trading sessions. Foreigners bought a net 982.4 billion (US$649 million) worth of local stocks. Bolstered by optimism over the peace deal between the U.S. and Iran, the benchmark Korea Composite Stock Price Index (KOSPI) jumped 5.2 percent to end the day at 8,545.98.