The USD-KRW exchange rate climbed to 1,482.00 won as of 6am on July 22, rising 8.60 won from the previous Seoul market close of 1,473.40 won, driven by escalating Middle East geopolitical risks and a sharp depreciation in the Japanese yen. Oil prices surged over 2% as US President Donald Trump stated he has no immediate intention to negotiate with Iran, rejecting a reported 10-day ceasefire proposal and vowing continued military action following the deaths of three US soldiers. The won's weakness intensified despite earlier inflows from SK Hynix's ADR listing, as the dollar index rose above 101 and the USD-JPY rate broke through 163 yen for the first time since December 1986, reflecting broad-based dollar strength amid heightened geopolitical uncertainty and energy market volatility.
USD-KRW Exchange Rate Rises to 1,482 Won on Geopolitical Pressures
The USD-KRW exchange rate traded at 1,482.00 won as of 6am on July 22 in the foreign exchange market, up 8.60 won from the previous Seoul market close of 1,473.40 won. Compared to the 6am close on July 21 of 1,477.90 won, the rate rose 4.10 won. The won opened at 1,477.60 won and initially fell to an intraday low of 1,471.10 won during Seoul trading hours as funds from SK Hynix's American Depositary Receipt (ADR) listing continued to flow in. The rate stabilized temporarily as expectations for negotiations persisted despite ongoing US airstrikes against Iran, with mediation efforts continuing through intermediary countries including Pakistan and Qatar. Moon Ji-seong, International Economic Management Officer at the Ministry of Economy and Finance, told Yonhap Infomax that dollar supply is "starting a rainy season, not just a shower," a comment that helped stabilize the exchange rate. The KOSPI rebounded after three days of declines, with foreigners showing modest net buying.
Trump Rejects Iran Ceasefire Proposal as Oil Prices Surge Over 2%
The exchange rate reversed its earlier declines during London and New York trading sessions as dollar strength reemerged. Reports emerged before the New York market opening that the US administration is preparing to impose alternative tariffs on dozens of countries later this week. President Trump stated he has no intention to negotiate with Iran immediately, despite Israeli media reporting that Iran proposed a 10-day ceasefire to the US. Speaking to reporters before a bilateral meeting with Lebanese President Joseph Aoun at the White House, Trump said, "They are being hit so hard that they are desperate to meet to end this situation," adding, "We have no interest until they are ready to meet in a meaningful way." Trump indicated he would continue attacks, stating Iran must pay a corresponding price for the deaths of three US soldiers. Reports also emerged that four oil tankers carrying Saudi crude turned back from the Red Sea following warnings from Houthi rebels, who announced a maritime blockade against Saudi Arabia the previous day. West Texas Intermediate (WTI) crude for August delivery closed at $84.91 per barrel on the New York Mercantile Exchange, up $1.68 (2.02%) from the previous session. Brent crude for September delivery closed at $91.01 per barrel, up $1.79 (2.01%).
USD-JPY Breaks 163 Yen as Dollar Index Climbs Above 101
The USD-JPY exchange rate rose to 163.137 yen, breaking through 163 yen for the first time since December 1986, marking a 39-year and 8-month high. The dollar index climbed to the early 101 level, with the closing figure recorded at 101.185. Strong bargain-hunting demand centered on semiconductor-related stocks drove all three major US stock indices higher. The Dow Jones Industrial Average rose 0.74%, while the S&P 500 and Nasdaq Composite gained 0.89% and 1.29%, respectively. The EUR-USD exchange rate stood at 1.13962 dollars. The offshore USD-CNH exchange rate declined to 6.7649 yuan.
FAQ
What caused the USD-KRW exchange rate to rise to 1,482 won on July 22?
The USD-KRW exchange rate climbed to 1,482.00 won as of 6am on July 22, rising 8.60 won from the previous Seoul close of 1,473.40 won, driven by escalating Middle East geopolitical risks, a sharp depreciation in the Japanese yen, and rising oil prices. President Trump rejected Iran's reported ceasefire proposal and stated he would continue military action, causing oil prices to surge over 2% and strengthening the dollar broadly.
How did oil prices react to the Middle East tensions on July 22?
West Texas Intermediate (WTI) crude for August delivery closed at $84.91 per barrel, up $1.68 (2.02%) from the previous session, while Brent crude for September delivery closed at $91.01 per barrel, up $1.79 (2.01%). The surge followed President Trump's statement that he has no immediate intention to negotiate with Iran and reports that four oil tankers carrying Saudi crude turned back from the Red Sea after Houthi rebel warnings.
Why did the USD-JPY exchange rate break through 163 yen?
The USD-JPY exchange rate rose to 163.137 yen, breaking through 163 yen for the first time since December 1986, marking a 39-year and 8-month high. The movement reflected broad-based dollar strength as the dollar index climbed above 101, driven by heightened geopolitical uncertainty and energy market volatility stemming from escalating US-Iran tensions.
