The won-dollar exchange rate opened at 1,503.2 won on the 26th. It rose 3.5 won from the previous day.
This is seen as the result of deepening overnight tensions between the United States and Iran. When geopolitical risk rises like this, risk appetite weakens and the won tends to fall in value.
On the 25th (local time), Iran's state-run Press TV reported that the Iranian government was negative about a U.S.-proposed cease-fire plan. Press TV reported that a senior Iranian official said, "Iran will not allow U.S. President Donald Trump to unilaterally decide when the war ends."
That same day, the White House said it would strike harder if Iran did not acknowledge military defeat. White House Spokesperson Karoline Leavitt said at a briefing that "President Trump is not a bluffer and is ready to unleash hell." She added, "If Iran does not understand that it has been militarily defeated and will continue to be defeated, President Trump will ensure they take a greater hit than ever before."
Park Sang-hyun, an analyst at iM Securities, said, "There is a sense that President Trump is seeking an exit strategy, but it is too early to be optimistic," adding, "It is at least positive that negotiations of some form between the United States and Iran are underway, but various scenarios could unfold depending on how the situation develops."