The won-dollar exchange rate against the U.S. dollar closed weekly transactions at 1,423.8 won at 3:30 p.m. on the 6th. That was down 0.7 won (0.04%) from the previous trading day's weekly transaction close.
The rate opened at 9 a.m. at 1,424.5 won, down 8 won from the previous trading day. Around 9:53 a.m., it fell to as low as 1,415.3 won. But it began rising about 30 minutes before the weekly transaction close and finished transactions in the 1,420-won range.
The recent decline in the rate is seen as driven by expectations that the Strait of Hormuz will be opened. When a war situation ends, international oil prices tend to fall and demand for the safe asset, the dollar, shrinks, pushing the rate down. Iran and Oman are reportedly nearing an agreement on control over navigation in the Strait of Hormuz. For now, the United States is not showing opposition to this.
The record-high size of Korea's current account surplus also appears to have contributed to the stronger won. According to the Bank of Korea, the current account surplus in June was $49.73 billion. Goods exports were $112.37 billion, marking the first-ever break above $100 billion.
One analysis says the rate did not fall more because of buying volumes from importers who purchase raw materials overseas in dollars. As the rate fell quickly in a short period, more moved to buy dollars in advance while they were cheaper.