The won-dollar exchange rate opened at 1,475 won on the 12th, up 2.6 won from the previous transaction day.
The won-dollar exchange rate is expected to rise on the day. That is because U.S.-Iran cease-fire talks have stalled. When uncertainty over war widens, demand for the safe-haven dollar increases, the value of the won falls, and the won-dollar exchange rate rises. As cease-fire talks struggled, on the 11th (local time) Brent crude futures rose 2.9% from the previous transaction day to $104.21 per barrel, and West Texas Intermediate (WTI) futures rose 2.8% to $98.07 per barrel.
U.S. President Donald Trump on the 10th rejected a proposal Iran sent through mediator Pakistan. The next day, President Trump described Iran's proposal as "trash" and said the cease-fire situation with Iran was "incredibly weak."
Net selling by foreigners in Korea's stock market is also expected to affect the exchange rate. When foreigners exchange the proceeds from selling domestic stocks into dollars, dollar demand expands, pushing the won-dollar exchange rate higher. The Korea Composite Stock Price Index (KOSPI) closed at 7,822.24 the previous day, hitting an all-time high, but foreigners were net sellers of 3.4907 trillion won.