The won-dollar exchange rate opened at 1,478.8 won on the 14th against the U.S. dollar, down 10.5 won from the previous day.
This appears to reflect expectations that the United States and Iran will reach a cease-fire after reports that the two countries are holding behind-the-scenes talks. If that happens, risk appetite tends to revive in the market, and the won tends to strengthen.
Overnight, Reuters and CNN, citing U.S. sources, reported that the United States and Iran are in ongoing talks. The source said, "There is continued progress toward reaching an agreement (between the two countries)."
On the same day, U.S. President Donald Trump told reporters at the White House, "We have been contacted by the other side (Iran), and they (Iran) very much want an agreement."
Meanwhile, as previously signaled, the United States has been blockading Iranian waters, including the Strait of Hormuz, from 10 a.m. on the 13th (local time). After armistice talks broke down on the 11th in Islamabad, Pakistan, the United States took steps to cut off supplies going into Iran.
Park Sang-hyun, a researcher at iM Securities, said, "The global financial market appears to be judging for now that either a deal is imminent or the Iran situation has passed its worst phase."