Won-Dollar Exchange Rate Opens at 1,508.5 Won, Down 21.6 Won... Impacted by Middle East Ceasefire Prospects (Update)

Dollar Index Falls Below 100 as U.S. and Iranian Presidents Hint at Possible End to Conflict

After the leaders of the United States and Iran mentioned the possibility of ending the Middle East war, which has lasted for over a month, the won-dollar exchange rate, which had climbed to the 1,530 won level, fell back into the 1,500 won range.

On April 1 in the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,508.5 won, down 21.6 won from the previous trading day. The exchange rate had started trading at 1,519.9 won over the weekend amid heightened risk aversion due to concerns about a prolonged war, and rose to as high as 1,536.5 won at 1:49 p.m., marking the highest level in about 17 years since March 10, 2009, during the global financial crisis.

Weekly trading closed at 1,530.1 won, up 14.1 won, but during the overnight session, the gain narrowed, ending at 1,517 won. This was because U.S. President Donald Trump suggested that the ceasefire negotiations with Iran were progressing well and that a withdrawal could take place within two to three weeks, while Iranian President Masoud Pezeshkian also stated that he was ready for a ceasefire if there were no further attacks.

The dollar index, which measures the value of the U.S. dollar against the currencies of six major countries, hovered above 100 until the previous day, but fell to 99.75 on the morning of April 1. The yen-dollar exchange rate, which had been approaching 160 yen, also reversed course and began to fall. The current yen-dollar exchange rate is 158.573 yen, down 0.09%. The won-yen cross rate stands at 951.66 won per 100 yen, down 7.65 won from the previous day's 3:30 p.m. benchmark rate of 959.31 won.

The KOSPI index surged over 5% on renewed optimism, triggering a buy-side circuit breaker in the early trading session. The electronic display board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul, showed the current status of the domestic stock market. On the same day, the won-dollar exchange rate opened at 1,508.5 won, down 21.6 won from the previous trading day. 2026.4.1 Photo by Kang Jinhyung

However, oil prices have shown mixed trends. On March 31 (local time), the May contract price for West Texas Intermediate (WTI) crude oil futures closed at $101.38 per barrel, down 1.46% from the previous session, while the May contract price for Brent crude oil, the global benchmark, finished at $118.35 per barrel, up 4.94% from the previous session.

Sanghyun Park, Economist at iM Securities, stated, "Hints at a possible end to the war are positive for the exchange rate, but since the outcome of the negotiations is still uncertain, we need to monitor the situation. If the issue regarding the Strait of Hormuz is not properly resolved, the burden of higher oil prices and transportation costs could keep the exchange rate trapped around the 1,500 won level." He added, "However, as U.S. Treasury yields are falling and, starting today, Korea is being included in the World Government Bond Index (WGBI), expectations about capital inflows could strengthen the won."

This content was produced with the assistance of AI translation services.