The won-dollar exchange rate closed at 1,468.5 won on the 21st. It fell 8.7 won from the previous day. It is the first time in about a month that the won-dollar rate has come down to the 1,460-won range since on the 11th of last month (1,466.5 won).
This appears to reflect expectations for an end-of-war negotiation between the United States and Iran. When geopolitical risks ease, market demand for risk assets tends to increase, which in turn tends to lift the won.
U.S. President Donald Trump effectively extended the truce deadline with Iran by one day. The two-week agreement from the first face-to-face talks was originally set to end on the 21st. But on the 20th (local time), Trump said in a phone interview with Bloomberg News, "The end time of the truce with Iran is Wednesday (the 22nd) evening, Washington time." He flexibly interpreted the truce's effective time to lengthen the truce period.
He also said talks would resume on the 21st. Trump said Vice President JD Vance would go to Pakistan for negotiations with Iran. On the possibility of extending the truce, Trump also said it was "very small."
The Iranian representative said there could be no negotiations if the United States acted threateningly. On the same day, according to Reuters, Iran's Parliament Speaker Mohammad Bagher Ghalibaf said on his X account (formerly Twitter), "We will not accept negotiations conducted under the shadow of threats."