The won-dollar exchange rate against the U.S. dollar opened at 1,493 won on the 25th. It fell 2.2 won from the previous day.
This is seen as reflecting overnight reports that the United States proposed a one-month cease-fire to Iran. When geopolitical tensions ease, investors tend to increase demand for risk assets. In that case, the won, which is not a reserve currency, appreciates.
The New York Times and The Times of Israel reported on the 24th (local time) that Jared Kushner, the senior adviser leading the U.S. negotiating team, and special envoy Steve Witkoff jointly conveyed a one-month cease-fire proposal to Iran. The report said it also included a 15-point agreement, such as abandoning nuclear capabilities.
According to The Times of Israel, the Trump administration asked Iran to: completely dismantle existing nuclear capabilities; pledge never to pursue nuclear weapons; impose a total ban on uranium enrichment on Iranian soil; hand over uranium enriched to about 60% to the International Atomic Energy Agency (IAEA); dismantle the Natanz, Isfahan and Fordow nuclear facilities; grant the IAEA full access, transparency and monitoring authority; abandon strategies involving regional proxy forces; halt funding, command and armament support for regional proxies; keep the Strait of Hormuz open; limit both the range and number of missiles in the missile program; and restrict missile use to self-defense.
Min Kyung-won, a researcher at Woori Bank, said, "Uncertainty from the Middle East that had driven greater volatility in financial markets has eased due to reports of the one-month cease-fire proposal," adding, "It will lead to a recovery in risk appetite in Asian markets."