The won-dollar exchange rate against the U.S. dollar closed at 1,479 won on the 29th. It rose 5.4 won from the previous transaction day.
The slight rise in the won-dollar exchange rate is because negotiations between the United States and Iran have stalled, raising prospects that a blockade of the Strait of Hormuz could be prolonged. If the strait remains blocked, oil prices rise, and the market tends to see increased demand for the safe asset, the dollar. As dollar demand grows, the value of the won falls and the won-dollar exchange rate rises.
Earlier, Iran conveyed to the United States a proposal to first reopen the Strait of Hormuz and then hold nuclear talks. The United States said it discussed the proposal, but the chances of accepting it are slim. Karoline Leavitt, White House Spokesperson, said on the 27th (local time), "I wouldn't say we are reviewing it (the proposal), but there were related discussions." The New York Times reported that U.S. President Donald Trump expressed dissatisfaction with the proposal.
If the talks show no progress, the won-dollar exchange rate is likely to rise. However, some analysis says the gain will be limited. That is because there is sufficient selling volume in the market from corporations seeking to convert dollars earned overseas into won. The fact that the won-dollar exchange rate closed up 1.1 won at 1,473.6 won on the previous day also means the value of the won was supported by corporations' dollar selling.