![[Seoul=NEWSIS] Reporter Lee Young-hwan = On the afternoon of the 29th, the closing price was displayed on an electronic board at Hana Bank's dealing room in Jung-gu, Seoul, as the KOSPI closed down 360.42 points (5.98%) from the previous trading day at 5,663.24. The KOSDAQ index fell 43.17 points (6.12%) from the prior session to close at 662.68 points, while the won/dollar exchange rate dropped by 15.8 won to settle at 1,446.7 won. July 29, 2026.](https://thumb.mt.co.kr/cdn-cgi/image/f=avif/21/2026/07/2026072916273123310_1.jpg)
The won/dollar exchange rate plummeted into the 1,440 won range amid expectations of easing tensions in the Middle East and a surge in dollar sales by export companies ahead of month-end. This marks the lowest closing level in approximately five months.
On the 29th, the won/dollar exchange rate closed weekly trading at 1,446.7 won, down 15.8 won from the previous session. This is the lowest closing price since February 27 (1,439.7 won). The exchange rate opened at 1,455.0 won and briefly dipped to as low as 1,442.6 won during trading. Intraday volatility reached 20.3 won.
The decline was the largest since the 8th (-29.7 won), and intraday volatility also hit its highest level since that same day (30.6 won).
Overnight, Iran announced it would discuss the Strait of Hormuz issue with Saudi Arabia and Oman, leading to a de-escalation of Middle East tensions. As a result, Brent crude oil closed down 4.83% from the previous session at $84.09 per barrel. The sharp drop in international oil prices reduced Korea's energy import burden, supporting a stronger won.
Ahead of month-end, export companies released significant volumes of negotiated dollar funds. In particular, SK Hynix's potential sale of dollars raised through its American Depositary Receipt (ADR) listing further increased downward pressure on the exchange rate.
Risk-aversion sentiment spread throughout the day, causing a sharp decline in domestic stock markets. The KOSPI closed down 360.42 points (5.98%) from the previous session at 5,663.24. Foreign investors also sold more than 1.2 trillion won worth of securities on the Korea Exchange, but the volume of dollar sales far exceeded this, driving a significant drop in the exchange rate.
Min Kyung-won, an economist at Woori Bank, stated, "Peace negotiations with Iran are showing progress, and the U.S. is leaning toward diplomatic solutions rather than additional airstrikes, easing geopolitical risks. With a favorable external environment for the won due to dollar weakness, combined with increased dollar sales by export companies ahead of month-end, downward pressure on the won/dollar exchange rate has intensified."
in ECONOMY
