The won-dollar exchange rate opened at 1,512.2 won on Apr. 2. That was up 10.9 won from the previous day.
This is seen as the result of the back-and-forth overnight between the United States and Iran over ending the war. When geopolitical risks rise, investor appetite for risk assets weakens. In such cases, the value of the won, which is not a reserve currency, tends to fall.
U.S. President Donald Trump said on Apr. 1 local time on the social media platform Truth Social that "Iran's 'New Regime President' just asked the United States for a cease-fire." He added of the person who requested the cease-fire, "Far less radical and much smarter than his predecessors."
Iran immediately denied the claim. Esmail Baghaei, Spokesperson for Iran's Foreign Ministry, said on state television, "Trump's announcement that we asked for a cease-fire is false and baseless." He added, "The war will continue until the aggressors (the United States and Israel) are punished and make full compensation to Iran."
Meanwhile, Trump is scheduled to deliver a national address on the Iran war at 10 a.m. KST on Apr. 2. Recently, Trump said he would end military operations against Iran within two to three weeks, and markets are watching to see whether he will declare the end of the war in this speech.