The won-dollar exchange rate was 1,421.8 won at 9 a.m. on the 6th. It fell 2.7 won (0.18%) from the prior transaction day's weekly closing price.
The rate is expected to hold around 1,420 won on the day. Optimism is building that the Strait of Hormuz, blocked by the Middle East war, will reopen. If the strait normalizes, international oil prices and U.S. Government Bonds yields could trend lower, potentially weakening the dollar. Iran's Foreign Ministry said it held talks over the past two months with Oman to establish a safe passage for merchant ships, adding, "We reviewed various aspects in depth."
As risk-asset investment sentiment recovers, there is a chance foreign funds will flow into the domestic stock market on a net basis. When foreigners sell dollars they hold to buy domestic stocks, it pushes the exchange rate down. The previous day, foreigners were net buyers of 1.4463 trillion won on the Korea Composite Stock Price Index (KOSPI).