On the 23rd, the won-dollar exchange rate opened at 1,465 won per U.S. dollar, down 4.9 won from the previous day. With this, the won-dollar exchange rate has fallen for three straight trading days.
This trend is seen as stemming from eased geopolitical tensions between the United States and Europe over Greenland. When geopolitical tensions ease, risk-on sentiment typically revives and the won tends to strengthen (a decline in the won-dollar exchange rate).
On the 22nd (local time), U.S. President Donald Trump said in an interview with Fox Business, "(total access) there is no end to it, and there is no time limit." Trump, who has consistently asserted U.S. ownership of Greenland, appears to be stepping back from a purchase.
Trump also withdrew a plan to impose tariffs on eight European countries that had deployed troops there to block a U.S. annexation of Greenland, after consultations the previous day with North Atlantic Treaty Organization (NATO) Secretary-General Mark Rutte. He also said, "We will not use force (over the Greenland issue)."
Still, embers of conflict over Greenland remain. Denmark Prime Minister Mette Frederiksen said in a statement on the 22nd (local time), "We can negotiate politically over everything, including security, investment, and the economy, but our sovereignty is not negotiable." She drew a red line on territorial sovereignty.
Regarding this, Lee Seung-hoon, a researcher at Meritz Securities, said, "We have passed one hurdle, but tensions across the Atlantic have not disappeared, so we need to continue to monitor developments."