The won-dollar exchange rate opened at 1,473.6 won on the 16th against the U.S. dollar. It fell 0.6 won from the previous day.
This is seen as the result of growing expectations that the United States and Iran will agree to end the war. When geopolitical risks ease, risk appetite tends to return to the market, and in that case the won tends to strengthen.
The White House said on the 15th (local time) that talks with Iran on ending the war are proceeding productively. White House Spokesperson Karoline Leavitt said at a White House briefing, "We remain very committed to negotiations and talks," adding, "These conversations are productive and are ongoing."
It denied reports that the United States had requested an extension of the cease-fire. Spokesperson Leavitt said, "There were a few incorrect reports this morning that we formally requested a cease-fire extension, but that is not true at this time." On the 7th, the United States and Iran agreed to a two-week cease-fire. The cease-fire is set to end on the 21st.
Min Kyung-won of Woori Bank said, "Overnight, optimism about an end-of-war deal between the United States and Iran permeated the market," adding, "In a market that is pricing in a post-end-of-war scenario, the won, categorized as a risk currency, is likely to face pronounced appreciation pressure."