The won-dollar exchange rate against the U.S. dollar closed at 1,506.1 won on the 21st. It fell 0.7 won from the previous transaction day.
The won-dollar exchange rate opened at 1,499.5 won, down 7.3 won, that day. But it began rising again and finished the transaction above 1,500 won. Based on the closing price, 1,500 won or higher has been maintained for five straight transaction days from on the 15th to that day.
The slight drop in the won-dollar exchange rate is due to expectations that U.S.-Iran cease-fire talks are nearing the final stage. If the war ends, risk-asset investment sentiment could recover, reducing demand for the safe-haven dollar and lowering the won-dollar exchange rate.
U.S. President Donald Trump said on the 20th (local time) that "talks with Iran are in the final stage." Esmail Baghaei, Iran Foreign Ministry Spokesperson, also said the proposal from the U.S. side is "under close review."
However, the reason the won-dollar exchange rate is staying above 1,500 won appears to be the net selling of domestic stocks by foreigners. When foreigners sell domestic stocks and convert them into dollars, dollar demand expands, creating upward pressure on the won-dollar exchange rate.
Foreign investors recorded net selling for nine straight transaction days from on the 7th to the 19th. The net selling size exceeds 42 trillion won. Adding the net selling in Jan.–Apr. ( $46.01 billion) brings the total to nearly 100 trillion won. Foreign investors also posted net selling of 241 billion won that day.