The won-dollar exchange rate against the U.S. dollar opened at 1,466 won on the 11th. It fell 5.7 won from the previous transaction day.
On this day, there is an outlook that the won-dollar exchange rate is likely to fall. Despite concerns over the failure of U.S.-Iran cease-fire talks, the stock market is expected to extend its rally. When demand for risk assets expands, the dollar, a safe-haven asset, weakens, and the won-dollar exchange rate falls.
According to foreign media reports, U.S. President Donald Trump on the 10th (local time) rejected Iran's counterproposal delivered through Pakistan, the mediator. Trump publicly criticized it on his social media (SNS), saying it was "completely unacceptable." However, some analysis noted that the failure of the talks left room for a diplomatic solution through pressure rather than leading to a resumption of military operations.
Even as tensions in the Middle East rose with oil tankers being attacked while passing through the Strait of Hormuz last week, the stock market was strong, led by artificial intelligence (AI). On Aug. 8 in the U.S. New York stock market, the Standard & Poor's (S&P) 500 index and the Nasdaq composite index hit a record high.