FX.co ★ South Korean Won Extends Gains on US-Iran Deal

The South Korean won strengthened to around 1,511 per dollar, extending its rebound after having briefly touched its weakest level since March 2009, near 1,560. The move came as global demand for safe-haven assets eased following progress toward a US-Iran agreement. Washington and Tehran reached a framework deal intended to end their months-long standoff and restore normal passage through the Strait of Hormuz, alleviating tail-risk concerns over energy supplies and helping to stabilize broader financial markets. This shift in sentiment pressured the US dollar and supported risk-sensitive Asian currencies, with the won emerging as one of the stronger performers. A sharp equity rally, including a gain of more than 5% in South Korea’s KOSPI index, further bolstered risk appetite. Meanwhile, recent consultations between South Korean and US officials on foreign-exchange market conditions signaled heightened vigilance over the latest bout of currency volatility.