The South Korean won strengthened against the US dollar on Wednesday, opening at 1,493 per dollar, up 2.2 won from the previous session. This rise came as US President Donald Trump hinted at a potential swift resolution to the ongoing Middle East conflict. The currency had surged to 1,495.2 won per dollar on Tuesday, bouncing back from a 17-year low of 1,517.3 won in the prior session after Trump announced a five-day delay in planned strikes on Iranian energy facilities.
Tehran refuted allegations of communication with the US, dismissing them as efforts to manipulate energy prices and stock markets, as reported by foreign media outlets. The global foreign exchange and stock markets, both domestic and international, witnessed increased volatility due to escalating US-Israeli attacks on Iran, evolving into a broader regional conflict. This situation has led to a significant spike in global oil prices, with the Strait of Hormuz effectively closed since the conflict’s inception, disrupting worldwide oil supplies.
The virtual asset market in South Korea experienced an 8% decline in the latter half of the previous year compared to six months earlier, primarily due to the drop in major cryptocurrency prices. Data from the Financial Services Commission revealed that the market capitalization of the virtual asset market stood at 87.2 trillion won (US$58.4 billion) by the end of December, marking a 7.9 trillion won decrease from six months prior. During the July-December period, Korean won deposits by traders surged by 1.9 trillion won, a 31% increase to reach 8.1 trillion won. However, the operating profit of market operators decreased by 38% to 381 billion won during the same period.
