The won-dollar exchange rate against the U.S. dollar finished at 1,495.2 won on the 24th. It fell 22.1 won from the previous day. It is the first time in four days that the won-dollar exchange rate has fallen below 1,500 won.
The decline in the won-dollar exchange rate is seen as the result of improved risk appetite after U.S. President Donald Trump said he would postpone an attack on Iran. When demand to invest in risk assets increases in the market, the value of the won, which is not a key currency, tends to rise.
On the 23rd (local time), President Trump said on the social media platform Truth Social, "I instructed the Ministry of National Defense to defer all military attacks on Iran's power plants and energy infrastructure for five days." It reversed his comment two days earlier that he would devastate the power plants unless Iran opened the Strait of Hormuz.
Trump also said, "I am pleased to report that the United States and Iran have had very excellent and productive conversations over the past two days about ways to completely and comprehensively resolve hostile acts in the Middle East."
However, the possibility remains that the won-dollar exchange rate could rise further. That is because there are expectations that military tensions between the United States and Iran will continue. The New York Times reported on the 23rd (local time) that the U.S. military could deploy airborne troops to Iran.
According to the New York Times, the United States is reviewing a plan to deploy elements of a combat brigade and part of the division headquarters from the U.S. Army's 82nd Airborne Division to operations related to Iran. The 82nd Airborne Division's combat brigade is an Immediate Response Force (IRF) capable of arriving anywhere in the world within 18 hours and conducting operations. There is also speculation that this force could be used in an operation to seize Kharg Island, a key base for Iran's oil exports.
Park Sang-hyun, an analyst at iM Securities, said, "Given that it remains uncertain whether negotiations between the United States and Iran will proceed, or even if they do, whether they will reach a deal, sharp volatility in financial markets is likely to continue for the time being."