On the 7th, the won started at 1,508.7 won per U.S. dollar, up more than 2 won. That is 2.4 won higher than the previous day's weekly trading close at 3:30 p.m.
In the Seoul foreign exchange market that day, uncertainty in the Middle East has been growing as U.S. President Donald Trump's negotiation deadline presented to Iran is one day away. Trump had set 8 p.m. on the 7th U.S. time and 9 a.m. on the 8th Korea time as the negotiation deadline.
The United States and Iran also rejected a 45-day cease-fire plan proposed by Pakistan, the mediator, the previous day and are continuing a war of nerves. Iran rejected the 45-day cease-fire and counteroffered a permanent end to the war, while the United States said it would not approve the cease-fire plan and would continue military operations against Iran.
If negotiations between the United States and Iran fall through, war risk could come to the fore. This is a factor that fuels won weakness. If the war drags on, demand will increase for safe-haven assets such as U.S. Government Bonds or gold, and investor sentiment toward the relatively risky won will be dampened.
Min Kyung-won of Woori Bank said, "Today, the exchange rate is expected to rise as real-money dollar buying from importers for payments coincides with difficulties in cease-fire talks," adding, "However, global dollar weakness on optimism about the cease-fire talks and improved risk appetite will cap the upside in the exchange rate."