The won-dollar exchange rate against the U.S. dollar opened at 1,486.5 won on the 30th. It rose 7.5 won from the previous transaction day.
The won-dollar exchange rate rose that day because U.S.-Iran negotiations hit a snag, sending international oil prices sharply higher. When U.S. President Donald Trump said he would continue a naval blockade until a nuclear deal is reached, West Texas Intermediate (WTI) again topped $100, lifting global oil prices. If the strait blockade continues, oil prices rise, and the market tends to see increased demand for the safe-haven dollar. When dollar demand increases, the value of the won falls and the won-dollar exchange rate rises.
On the 29th (local time), President Trump said in an interview with U.S. outlet Axios, "A blockade is more effective than a bombing," adding, "Iran wants a deal. I don't want to lift the (Strait of Hormuz) blockade." It is effectively interpreted as rejecting Iran's negotiation proposal. Earlier, Iran conveyed to the United States a proposal to first open the Strait of Hormuz and then hold nuclear talks. The United States said it discussed the proposal, but the likelihood of acceptance remains quite low.
In addition, the U.S. Federal Open Market Committee (FOMC) released an announcement to hold rates at the current 3.5%–3.75% per year, which is also expected to influence the rise in the exchange rate. As opinions emerged to delete language signaling an accommodative monetary policy stance from the policy statement, the market judges that the timing of a benchmark rate cut has been pushed back further.