The won-dollar exchange rate against the U.S. dollar closed at 1,513.4 won on the 17th. It rose 1.8 won from the previous day.
It is seen as the impact of frictions over the detailed terms as the United States and Iran head into end-of-war talks. If geopolitical risks are not resolved, investors tend to prefer the safe-haven key currency (the dollar), pushing up the dollar's value and driving down the won's value (a rise in the won-dollar exchange rate).
The Swiss Foreign Ministry said the signing ceremony for a U.S.-Iran end-of-war memorandum of understanding will be held on the 19th in Bürgenstock, Switzerland. In this regard, U.S. President Donald Trump told reporters on the 16th (local time) that "Iran will never have a nuclear weapon, and it will not develop it, buy it, or take any action." He added, "If Iran violates this and seeks to possess a nuclear weapon, they will pay a tremendous price."
Armed clashes between Iran and Israel continue. Israel has coordinated with the United States in the current U.S.-Iran war. On the 16th (local time), the Israel Defense Forces said in a statement that its troops in southern Lebanon intercepted several rockets fired by Hezbollah, a pro-Iran militant faction. The military also said it detected a suspicious car in southern Lebanon and bombed the vehicle. Lebanon's state-run news agency reported that at least four people were killed in the strike.
Foreign investors' net selling of domestic stocks also appears to have driven the rise in the won-dollar exchange rate. On the 17th, foreign investors sold 992.4 billion won worth of shares on the Korea Composite Stock Price Index (KOSPI) market. When foreign investors sell domestic stocks and exchange the proceeds into dollars, dollar demand increases, leading to a rise in the won-dollar exchange rate.