The won-dollar exchange rate opened at 1,465.8 won on the 6th. It rose 3 won from the prior transaction day.
The won-dollar exchange rate is expected to open higher that day but could turn lower intraday, analysts said. Iran carried out an airstrike near the Strait of Hormuz, but both the United States and Iran are denying an all-out war, saying talks are making progress. The closer the two countries get to a cease-fire, the more risk appetite recovers. As demand for the safe-haven dollar falls and the won strengthens, the won-dollar exchange rate declines.
U.S. President Donald Trump warned on the 4th (local time), "Iran's military will be wiped off the face of the earth," but the next day said, "Significant progress has been made toward a full and final agreement with Iran's representatives." As a result, on the 5th, all three major indexes closed higher on the New York stock exchange. The S&P 500 index and the Nasdaq both hit a record high.
An expansion of foreign buying in the domestic stock market could also lift the won. When foreigners sell dollars they hold and buy won to purchase domestic stocks, it pushes the won-dollar exchange rate lower.
However, with domestic residents' demand for overseas stock investments also expanding, the decline in the won-dollar exchange rate is not expected to be large. Dollar demand from corporations that must settle payment amounts overseas was also assessed to be considerable.