The won-dollar exchange rate opened at 1,479.5 won on the 20th. That was down 4 won from the previous transaction day.
When geopolitical conflict has intensified, risk appetite has tended to weaken and the won-dollar exchange rate has risen. But recently, as the war dynamics between the United States and Iran have shifted by the hour, that formula does not seem to hold.
Overnight, the second face-to-face talks between the United States and Iran became uncertain. Iran's state-run IRNA said on the 19th (local time), "Reports that a second meeting will be held in Islamabad (the capital of Pakistan) are not true." It added, "The United States' excessive, irrational, and unrealistic demands; frequent shifts in position; constant contradictions; continuation of a naval blockade considered a violation of the cease-fire agreement; and threatening rhetoric are blocking progress in the talks."
The same day, U.S. President Donald Trump said an Iranian cargo ship had been seized. Through his social media Truth Social, he said, "Today, an Iranian cargo ship named Tusca, about 900 feet (about 275 meters) long and as heavy as an aircraft carrier, tried to break through our naval blockade and it didn't go well." He added, "Right now the U.S. Marines have the vessel. We are looking at what's inside it." The comments suggested the U.S. Navy fired on and seized the Iranian cargo ship.
Meanwhile, the United States and Iran had previously agreed to a two-week cease-fire, which is set to end on the 21st (local time).