The won-dollar exchange rate against the U.S. dollar closed at 1,507.9 won on the 29th, up 5.1 won from the previous trading day. From the 15th to this day, the closing price has stayed at the 1,500-won level for 10 straight trading days.
The won-dollar exchange rate opened at 1,495.5 won on the day. The move came on news that the U.S.-Iran end-of-war agreement awaits only final approval from U.S. President Donald Trump. If the war ends, risk-asset investment sentiment could recover and demand for the safe-haven dollar could shrink, putting downward pressure on the won-dollar exchange rate.
A U.S. outlet reported that the U.S. and Iran have only the final step left to agree on a memorandum of understanding (MOU) to end the war. However, an Iranian outlet, citing a member of Iran's negotiating team, said the report was "not true."
The won-dollar exchange rate widened its intraday gains and closed above 1,500 won. The move is seen as driven by foreign investors' selling of domestic stocks. When foreigners sell domestic stocks and convert the proceeds into dollars, the won-dollar exchange rate can rise.
Foreigners were net sellers of more than 1 trillion won in domestic stocks on the day. In April, net selling totaled 4 trillion won, down from the previous month (43 trillion won), but it has expanded again this month. Foreigners were net sellers of more than 14 trillion won just last week.