The won-dollar exchange rate against the U.S. dollar closed at 1,500.6 won on the 20th. It fell 0.4 won from the previous day. The won-dollar exchange rate did decline, but it remained above 1,500 won for the second straight day after the previous day's 1,501 won.
Although modest, the decline in the won-dollar exchange rate is seen as a result of the United States signaling caution against an escalation with Iran, reviving investor appetite for risk assets. When demand grows for investing in risk assets, the value of the won, which is not a reserve currency, tends to rise.
Overnight, U.S. President Donald Trump said he would not deploy ground troops against Iran's forces. On the 19th (local time), Trump said at the White House during talks with Japan Prime Minister Sanae Takaichi, "We are not sending troops (ground forces) anywhere." He added, "Even if I were to do so, I wouldn't say it in advance, but I'm not sending troops."
The same day, Israel Prime Minister Benjamin Netanyahu said at a news conference, "The war could end much faster than people think." He also said, "After 20 days of U.S.-Israel airstrikes, Iran can no longer enrich uranium and does not have the capability to produce ballistic missiles." He suggested that an early end to the war is possible, as Israel's goal in this war—to block Iran's development of nuclear weapons—has been achieved.
Kim Yu-mi, an analyst at Kiwoom Securities, said, "The possibility of (U.S.) easing sanctions on Iranian crude oil and Prime Minister Netanyahu's mention of an early end to the war are interpreted as moves to avoid the worst-case scenario."