The won-dollar exchange rate against the U.S. dollar closed at 1,517.2 won on the 22nd, up 11.1 won from the previous trading day. Since the 15th, it has stayed above 1,500 won for seven consecutive trading days.
The won-dollar exchange rate was seen falling on the day as expectations grew for an end to the U.S.-Iran war. When a war ends, demand for investments in risk assets tends to rise and demand for the safe-haven dollar tends to fall, pushing the won-dollar exchange rate lower.
U.S. President Donald Trump said talks on extending a cease-fire with Iran and reopening the Strait of Hormuz are "proceeding smoothly." He also said he could accept handling Iran's stockpile of enriched uranium in Iran or a third country. That marks a step back from the previous position that the enriched uranium must be transferred to the United States.
However, net selling of domestic stocks by foreign investors is continuing. When foreigners sell domestic stocks and convert the proceeds into dollars, dollar demand expands and the won-dollar exchange rate rises.
The KOSPI index closed up 2.55% at 8,047.51, marking a record high. However, foreigners were net sellers of 183.9 billion won on the day. It was the 13th consecutive trading day of net selling. Foreign investors alone were net sellers of 14.3066 trillion won over the past week.