USD-KRW 1-Month NDF Rises to 1,527.60 Won on ECB Hawkish Remarks

The USD-KRW 1-month NDF rose in overnight trading, with overseas brokers reporting a final mid-rate of 1,527.60 won last night. Accounting for the recent 1-month swap point of -1.30 won, the NDF rate reflects a 3.30 won increase compared to the Seoul FX market spot close of 1,525.60 won on the 3rd. The bid was quoted at 1,527.40 won and the ask at 1,527.80 won. The USD briefly weakened against the euro following hawkish remarks from a key European Central Bank official, while geopolitical risk eased as shipping through the Hormuz Strait continued despite stalled US-Iran ceasefire negotiations. As of 6 AM today, the USD-KRW spot rate closed at 1,530.00 won, up 4.40 won from 3:30 PM on the 3rd, amid modest gains in US equity indices and near-flat oil prices.

USD-KRW NDF Rises 3.30 Won on ECB Hawkish Tone

Overseas brokers reported the USD-KRW 1-month NDF closed at 1,527.60 won (MID) last night. The bid-ask spread was 1,527.40 won to 1,527.80 won. After adjusting for the 1-month swap point of -1.30 won, the NDF rate was 3.30 won higher than the Seoul FX market spot close of 1,525.60 won on the 3rd. The USD temporarily declined against the euro as a key European Central Bank official made hawkish comments, strengthening the euro against major currencies. Geopolitical risk from the Middle East eased somewhat, as vessels continued to transit the Hormuz Strait despite no clear progress in US-Iran ceasefire talks.

Broader FX and Commodity Markets Show Mixed Movements

International oil prices finished nearly flat, with August-delivery WTI crude down 0.2% to $68.5 per barrel. In New York equity markets, the three major indices rose together as bargain buying flowed into technology stocks. As of 6 AM today, the USD-KRW spot rate closed at 1,530.00 won, up 4.40 won from 3:30 PM on the 3rd. Near the market close, the dollar index edged down to 100.845. The USD-JPY rate stood at 162.069 yen, the EUR-USD rate at 1.14406 dollars, and the USD-CNH rate at 6.7929 yuan.

FAQ

What was the USD-KRW 1-month NDF rate last night?
Overseas brokers reported the USD-KRW 1-month NDF closed at 1,527.60 won (MID) last night, with a bid of 1,527.40 won and an ask of 1,527.80 won.

Why did the USD weaken against the euro?
The USD briefly declined against the euro following hawkish remarks from a key European Central Bank official, which strengthened the euro against major currencies.

How did geopolitical risk in the Middle East affect the market?
Geopolitical risk eased as shipping through the Hormuz Strait continued, despite no clear progress in US-Iran ceasefire negotiations.