The won-dollar exchange rate against the U.S. dollar opened at 1,451 won on the 20th, up 5.5 won from the previous day. The move is seen as stemming from chilled investor sentiment toward risk assets as the possibility of a U.S.-Iran clash grows. When investors shy away from risk assets, the value of the won, which is not a key currency, tends to fall.
U.S. President Donald Trump said on the 19th (local time) that Iran must reach a nuclear deal, warning that otherwise "bad things" would happen. That day, Trump delivered a speech at the first board meeting of the Peace Committee of the "Donald Trump Institute for Peace" in Washington, D.C. Trump said, "In recent years, it has been proven that reaching a meaningful agreement with Iran is not easy," adding, "We must reach a meaningful agreement. Otherwise, bad things will happen."
Trump said, "We will probably make a deal," adding, "You will probably know the result within the next ten days." He continued, "Iran cannot have nuclear weapons. It's very simple," and said, "If they possess nuclear weapons, the Middle East cannot have peace."
In this regard, Min Kyung-won, a researcher at Woori Bank, said, "As President Trump effectively issued a final ultimatum to Iran, market sentiment has weakened." Min added, "The pronounced demand from importers to buy dollars at low prices is also a factor pushing up the won-dollar exchange rate."