Affected by expectations of US-Iran negotiations, the Korean won against the US dollar fell to the 1460 won range. The Korea Composite Stock Price Index recorded the second-largest increase.

On the Seoul foreign exchange market, the Korean won against the US dollar fell to around 1,460 won on March 5. Market analysis suggests that this trend was positively influenced by expectations of negotiations between the US and Iran. The exchange rate dropped 8.1 won compared to the previous day, closing at 1,468.1 won, after opening at one point as low as 1,455.65 won. This means that the exchange rate, which broke the 1,500 won level during overnight trading the day before, declined by about 40 won within a day.

As developments in US-Iran negotiations became apparent, the market assessed that geopolitical tensions in the Middle East had eased. This atmosphere also affected international financial markets. On the same day, the US stock markets in New York, the Dow Jones Industrial Average and the Nasdaq Composite Index, both closed higher, and West Texas Intermediate (WTI) crude oil futures prices also saw a slight increase.

Meanwhile, the Korean stock market experienced significant fluctuations. The KOSPI rose by 490.36 points, closing sharply higher at 5,583.90 points. This was the second-largest single-day gain in KOSPI history. The main driver of this rally was large-scale buying by individual investors. Although foreign and institutional investors were net sellers, individual investors showed substantial net buying.

At the same time, major foreign exchange markets saw the US dollar strengthen and the Japanese yen weaken. This was due to the rise in the US Dollar Index, which measures the dollar’s value against six major currencies.

Looking ahead, the USD/KRW exchange rate may continue to fluctuate based on international political developments and US economic policies. The stability of the Middle East and future US interest rate policies could become key variables for the market, and investors should closely monitor these international financial market trends.