The won-dollar exchange rate against the U.S. dollar closed at 1,504.3 won on the 1st, down 3.6 won from the previous trading day. From the 15th of last month through the day, the closing price has held the 1,500-won level for 11 consecutive trading days.
The reason the won-dollar exchange rate is holding at 1,500 won is seen as the U.S.-Iran end-of-war talks have not yet concluded. If the war continues, demand for the safe asset dollar persists, which becomes a factor pushing up the won-dollar exchange rate.
U.S. President Donald Trump said in an interview with Fox News on the 30th of last month (local time) that "the Strait of Hormuz could also be opened immediately upon signing the agreement," while stressing that the condition is that Iran does not possess nuclear weapons. Local media reported that President Trump did not approve a draft memorandum of understanding (MOU) to end the war and sent it back to the Iranian side with some conditions strengthened.
Net selling of domestic stocks by foreign investors also had an impact. When foreign investors sell domestic stocks and exchange the proceeds into dollars, dollar demand increases, tending to push up the won-dollar exchange rate. Intraday net selling by foreign investors surpassed 2 trillion won on the day. Foreign investors recorded net selling of 44.715 trillion won in May alone. In April, it was 4 trillion won, down from March (43 trillion won), but it increased again in May.