The won-dollar exchange rate against the U.S. dollar closed at 1,489.9 won on the 12th. It rose 17.5 won from the prior trading day.
The won-dollar exchange rate rose for three trading days in a row, including the day. It is seen as due to a rise in international oil prices as cease-fire talks between the United States and Iran have struggled. As uncertainty grows and demand for the safe asset, the dollar, expands, the value of the won tends to fall and the won-dollar exchange rate tends to rise.
U.S. President Donald Trump on the 10th rejected a proposal that Iran sent through mediator Pakistan. The next day, Trump called Iran's proposal "trash" and said the cease-fire situation with Iran was "incredibly weak." He also said he would consider resuming "Project Freedom," which would help third-country ships trapped in the Strait of Hormuz get out.
Net selling by foreigners in Korea's stock market also played a role. When foreigners sell Korean stocks and exchange the proceeds into dollars, dollar demand expands and the won-dollar exchange rate tends to rise. On the day, the Korea Composite Stock Price Index (KOSPI) ended the transaction at 7,643.13, down 179.11 points (2.29%) from the prior trading day. Foreign investors posted net selling of 3.4907 trillion won the previous day and 5.4256 trillion won on the day.