The won-dollar exchange rate against the U.S. dollar opened at 1,493.8 won on the 19th. It fell 6.5 won from the previous trading day.
The won-dollar exchange rate is expected to decline on this day on hopes for U.S.-Iran cease-fire talks. If the Middle East war winds down and preference for risk assets expands, demand for the safe-haven dollar will shrink, sending the won-dollar rate lower.
Earlier, U.S. President Donald Trump said he decided to hold off on a military strike against Iran scheduled for the 19th. Middle Eastern allies, including Qatar, Saudi Arabia and the United Arab Emirates, requested a pause in military action, saying an agreement with Iran was "imminent." However, Trump was reportedly displeased with a new cease-fire proposal conveyed via mediator Pakistan. The plan's core elements, including a halt to uranium enrichment, were said to be missing.
The decline in the won-dollar rate is not expected to be large. That is because foreign investors continue to be net sellers of Korean stocks. When foreign investors sell Korean shares and exchange the proceeds into dollars, dollar demand increases, and the won-dollar rate tends to rise.