As talks between the United States and Iran stalled, oil prices rose and the exchange rate also inched up. Demand for the safe-haven dollar expanded, and risk asset appetite retreated. The previous day, when expectations for an end to the U.S.-Iran conflict were high, the exchange rate closed at 1,472.5 won, down 12 won.
Earlier, Iran proposed a "phased negotiation plan" to the United States, suggesting reopening the Strait of Hormuz first and then resuming nuclear talks. U.S. President Donald Trump said he would review the plan but has not offered any further position. Spokesperson Karoline Leavitt said at a briefing on the 27th (local time), "The president held a meeting, and the proposal (the phased negotiation plan) was discussed."
The exchange rate is expected to have a high likelihood of rising until the talks are concluded. However, as the Middle East situation is shifting into a negotiating phase rather than entering a new conflict, a sharp surge in the exchange rate is considered unlikely. In addition, as export corporations have increased dollar-selling to convert overseas earnings into won, analysts say the upside in the exchange rate will likely be limited.