Korea's currency strengthens on US-Iran peace deal

A sign showing the exchange rates of the Korean won against other currencies informs people at a foreign exchange booth in Seoul, Sunday. Yonhap

The Korean won rose to a nearly two-week high Monday after U.S. President Donald Trump has said Washington and Tehran have reached a peace deal.

The won opened at 1,511.4 won per dollar, up 8.4 won from the previous session's close, and further gained ground to 1,504 won per dollar at one point in morning trading.

In terms of intraday trading, it was the strongest level since June 1, when the won was traded at 1,500 won per dollar.

As of 9:48 a.m., the won was traded at 1,506.8 won per dollar, up 7.9 won from the previous session's close.

Trump announced the deal on social media, raising expectations that the war in the Middle East is nearing an end and the Strait of Hormuz would be soon reopened.

Although the stance from Israel remains unclear, global oil prices dropped on the U.S.-Iran deal announcement.

The won's strength also came after Korean Deputy Finance Minister Moon Ji-sung held talks with U.S. counterparts last week over recent conditions in the foreign exchange markets.