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Won hits strongest level in a month following cease-fire agreement in Iran war

Published: 08 Apr. 2026, 18:27

Won and dollar bills are stacked at Hana Bank's offices in Jung District, central Seoul, on April 17. [NEWS1]

The won strengthened sharply against the dollar on Wednesday as the United States and Iran agreed upon a two-week cease-fire in their monthlong conflict.

The won strengthened by 33.6 won against the dollar to trade at 1,470.6 per dollar on Wednesday afternoon.

It was the strongest level since March 11, when the currency stood at 1,466.5 per dollar and was experiencing heightened volatility due to the Middle East crisis.

The gain came after U.S. President Donald Trump said on Tuesday that he had agreed to refrain from attacking Iran for two weeks on condition that Iran reopens the Strait of Hormuz.

Tehran also agreed to reopen the crucial waterway, provided that attacks against Iran are halted, according to foreign media reports.

The conflict, which began following U.S.-Israeli strikes on Iran in late February, has escalated into a broader regional confrontation, rattling global markets and driving up oil prices, as the Strait of Hormuz has effectively been shut.

"Easing tensions in the Middle East has calmed risk-off sentiment," Lee Yoo-jung, an analyst at Hana Bank, said. "Global oil prices have plunged, and the dollar has also weakened significantly on the news."

The dollar index, which measures the dollar against a basket of six major currencies, fell below the 99 level.

Global oil prices tumbled, with Brent crude dropping nearly 15 percent to $93.48.

On the news of the cease-fire agreement in the Middle East, the benchmark Kospi climbed 6.87 percent to close at 5,872.34 on Wednesday.

Yonhap