The won-dollar exchange rate against the U.S. dollar closed at 1,476 won on the 22nd. It rose 7.5 won from the previous day.
This is seen as the result of the failure of the second face-to-face talks between the United States and Iran. When such geopolitical tensions are not resolved, investor sentiment toward risk assets weakens in the market, and in such times the won, which is not a key currency, tends to fall.
Overnight, Iran said it would not take part in the second face-to-face talks with the United States scheduled for the 22nd. The 22nd is also the day the truce agreed at the first face-to-face talks between the United States and Iran ends. In response, the United States said it would extend the truce. U.S. President Donald Trump said on the social media platform Truth Social, "As expected, the Iranian government is seriously divided, and at the request of Pakistan's Army Chief Asim Munir and Prime Minister Shehbaz Sharif, we were asked to suspend the attack on Iran until the Iranian leadership and negotiating team prepare a unified proposal." He added, "We will extend the truce until their proposal is submitted and the discussions are concluded one way or the other." While extending the truce, the duration was not fixed.
Iran's position is that it does not agree to President Trump's truce extension. Iran's state broadcaster reported on the 22nd (local time) that it would not recognize the U.S. truce extension and would act in accordance with Iran's national interests. Iran's semi-official outlet Tasnim also reported that the U.S. maintenance of a naval blockade is a hostile act and that if the blockade continues, Iran will not open the Strait of Hormuz.
Baek Yoon-min, a researcher at Kyobo Securities, said, "As we move toward the end of the year, when geopolitical risks ease, the exchange rate is expected to fall to the low 1,400-won range," adding, "What matters is that overseas investments by domestic investors, which drove last year's rise in the exchange rate, are losing steam."