The won-dollar exchange rate opened at 1,481.4 won on the 17th. It was up 6.8 won from the previous day.
Until now, the won-dollar exchange rate fell when the possibility of a cease-fire deal between the United States and Iran grew. That was because demand to invest in risk assets increased. But on this day, caution spread in the market that negotiations between the two countries may not immediately resolve geopolitical risks, and the won-dollar exchange rate appeared to rise.
Overnight came news that Israel and Lebanon would hold a 10-day truce. U.S. President Donald Trump said on his social media platform Truth Social, "I just had a very good conversation with Lebanon's respected President Joseph Aoun and Israel's Bibi (short for Benjamin) Netanyahu, the prime minister." It means the leaders of Israel and Lebanon agreed to a truce. On the 7th, Israel had carried out airstrikes on Lebanon, saying it would attack Hezbollah, a pro-Iran militant faction.
President Trump said the truce would begin at "5 p.m. Eastern Standard Time." He did not specify an exact date, but it is presumed to be on the 16th (local time), the day he posted. Trump also said, "For the first time since as far back as 1983, I will invite Prime Minister Netanyahu and President Aoun to the White House for meaningful talks between the two countries."
The same day, Trump said a second face-to-face negotiation with Iran could be held this weekend. On the 16th (local time), Trump told reporters at the White House that there had been much progress in talks with Iran and that they were very close to an agreement. The first face-to-face talks, held on the 11th in Islamabad, Pakistan, ended with "no deal."
Jeong Yong-taek, an analyst at IBK Securities, said, "The (Middle East) situation remains fluid, and risk factors are scattered, so it is still hard to be confident about how the trend will change," adding, "It is also hard to say geopolitical risks are disappearing."