The won-dollar exchange rate against the U.S. dollar closed at 1,490.6 won on the 13th. It rose 17.5 won from the previous trading day.
The won-dollar exchange rate rose for four trading days in a row, including the day. That is because peace talks between the United States and Iran have shown no progress. When uncertainty grows and demand increases for the safe asset, the dollar, the won weakens and the won-dollar exchange rate tends to rise.
U.S. President Donald Trump called Iran's proposal "trash" and said he would consider resuming "Project Freedom" to help third-country ships trapped in the Strait of Hormuz get out.
Heightened inflation worries also played a role. The U.S. consumer price index (CPI) for April rose 3.8% from a year earlier, the highest increase since May 2023. When inflation concerns grow, it becomes harder for the Federal Reserve (Fed) to cut its benchmark rate.
Net selling of domestic stocks by foreign investors also continued for five trading days in a row. When foreigners sell domestic stocks and exchange the proceeds into dollars, dollar demand expands and the won-dollar exchange rate rises. The KOSPI index closed at 7,844.01, up 2.63% from the previous trading day. Foreigners were net sellers of 3.7218 trillion won. The day before, they were net sellers of 5.4256 trillion won, and on the 11th, 3.4907 trillion won.