Why Koreans Can Buy a Dollar for Less Than a Dollar Right Now

The South Korean won a drop of 1,511 won per dollar on Monday, its lowest level since March 2009 — as the war in Iran sent investors into safe-haven assets. *****

The dollar’s surge is real but in Korea’s crypto markets, the kimchi premium on tether has quietly collapsed.

Won Freefall Drives Dollar Demand

Foreign exchange market Seoul’s foreign Exchange business opened at 1,504, according to a statement from the city of Seoul. 9 won before spiking to 1,511, after which he was told by s. intraday won by 8 who was a . After the Iranian war started March 1 on March 1, the dollar index jumped from mid-97 to nearly 100.

A further layer of inflationary pressure on the won is Iran’s blockade of the Strait of Hormuz, which has pushed oil prices higher. sold a net 335 to foreign investors. The year’s sixth circuit breaker was the seventh circuit in early trading, with 7 billion worth of KOSPI shares.

Historically, Korean retail investors have seen $USDT as a convenient dollar surrogate by selling it above parity during periods of won weakness and crypto volatility. the kimchi premium, which went up to 7-years high. The price shock on Bithumb in October’s market panic – 47% of the retail euphoria was a good indicator for retail depression; traders bought $USDT to rotate into bitcoin and altcoins during volatile periods.

Why $USDT Isn’t Following the Script

$USDT (about 1,503 KRW) trades on Upbit, South Korea’s largest exchange, about 0. five percent less than the spot dollar rate,’ . The tether is usually paid by Korean retail investors during dollar rallies, and typically costs a premium for the telar (the term “dollar proxy”).

The dynamic is reversed this time, however. The heightened geopolitical risk has also reduced the demand for $USDT as a trading vehicle, which has been declining in response to increasing speculative appetite for crypto. Investors are pursuing real dollars and dollar-denominated assets rather than stablecoin positions.

This leads to an extremely low “$USDT discount” its stability tracking below its peg in Korean won terms – meaning crypto markets are not participating in the safe-haven trade driving traditional FX.

Trump’s 48-hour ultimatum to Iran over the Hormuz Strait, and Tehran’ threatening permanent closure in response, suggests pressure on the won is far from imminent.

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