The won-dollar exchange rate opened at 1,504.7 won on the 22nd. It fell 1.4 won from the previous transaction day.
The won-dollar exchange rate is expected to fall on the day. The United States-Iran end-of-war talks have not concluded, but expectations for an end to the war are pushing down international oil prices and Government Bonds yields, while the New York stock market and other stock markets are rising. When preference for risk asset expands, demand for the safe-haven dollar declines, and the won-dollar exchange rate falls.
Earlier, U.S. President Donald Trump said talks with Iran were in the final stage. A senior Iranian official also told Reuters regarding the end-of-war talks that "many of the differences have been narrowed." The remaining issues are known to be highly enriched uranium and control of the Strait of Hormuz.
On the 21st (local time), all three major New York stock indexes also closed higher. The S&P 500 index rose 0.17% to 7,445.72, and the Nasdaq rose 0.09% to 26,293.1. On the same day, West Texas Intermediate (WTI) fell 1.94% to $96.35 per barrel from the previous day. Brent, the benchmark for oil prices, also fell 2.32% to $102.58.
A shift by foreign investors to net buying of domestic stocks is also anticipated. When foreigners sell dollars to buy domestic stocks, it becomes a factor pushing the won-dollar exchange rate lower. Foreigners recorded an average net sale of more than 4 trillion won per day for 20 days starting on the 7th. However, the previous day, the net selling amount narrowed to 219.6 billion won.