The won-dollar exchange rate against the U.S. dollar closed at 1,519.7 won on the 2nd. It rose 18.4 won from the previous day.
This is seen as the result of fading expectations that the Middle East war will end. With geopolitical risks unresolved, investor sentiment toward risk assets weakened. When that happens, the value of the won, which is not a key currency, tends to fall.
That day, the won-dollar exchange rate opened at 1,512.2 won, up 10.9 won from the previous day. It came as the United States and Iran voiced differences over a truce. U.S. President Donald Trump said on Truth Social on the 1st (local time), "The New Regime President of Iran has just asked the United States for a cease-fire." Iran denied it. Esmail Baghaei, the Iranian Foreign Ministry Spokesperson, said on state television, "Trump's announcement that we asked for a cease-fire is false and baseless."
At 10 a.m. Korea time, President Trump said in a national address at the White House that the United States would strike Iran. The won-dollar exchange rate rose into the 1,520-won range. Trump said over the next two to three weeks there would be an "extremely powerful strike" against Iran. He added, "If no agreement is reached during this period, we are watching key targets," and "We will very powerfully, probably simultaneously, strike their power plants."
Before the close of weekly trading (9 a.m.–3:30 p.m.), the won-dollar exchange rate narrowed its gains but finished near 1,520 won.