The won-dollar exchange rate against the U.S. dollar closed at 1,511.6 won on the 16th, up 0.5 won from the previous trading day. Based on stock closing prices, the won-dollar exchange rate has stayed above 1,500 won for 21 consecutive trading days from the 15th of last month through today, the second-longest stretch after the foreign exchange crisis (49 consecutive trading days).
The won-dollar exchange rate opened at 1,513.6 won on the day and moved between 1,510 and 1,517 won, showing a somewhat stable pattern. It is seen as the result of the conclusion of U.S.-Iran cease-fire talks. When a war ends, investor sentiment toward risky assets such as stocks recovers. Demand for the dollar as a safe asset weakens, and the won-dollar exchange rate can fall.
U.S. President Donald Trump said on the 15th (local time), "We hope to maintain good relations (with Iran)." Trump said the Strait of Hormuz will be fully opened as soon as a memorandum of understanding (MOU) is signed on the 19th.
Foreign investors were net buyers of domestic stocks for the third straight trading day. When foreign investors exchange the dollars they hold into won to buy Korean stocks, the won strengthens and the won-dollar exchange rate can fall. Foreign investors were net buyers of 1.5 trillion won on the day. The previous day's net buying was about 1 trillion won.