The won-dollar exchange rate against the U.S. dollar closed at 1,537 won on the 22nd. It rose 10 won from the previous transaction day.
The won-dollar exchange rate opened at 1,530.9 won that day, moved modestly without major volatility, and closed higher. As a result, the won-dollar rate, based on the stock closing price, stayed above 1,500 won for 25 transaction days in a row from the 15th of last month to that day. It is the second-longest stretch after the foreign exchange crisis (49 consecutive transaction days).
This trend is seen as stemming from the failure to wrap up the U.S.-Iran end-of-war talks. When war conditions persist, demand for the safe asset, the dollar, increases, and the won-dollar exchange rate tends to rise.
After agreeing to a cease-fire on the 19th, the United States and Iran continued talks in Switzerland, but the situation escalated into a breakdown crisis when the Iranian delegation left the venue. A social media (SNS) post by U.S. President Donald Trump saying that if Iran cannot control Hezbollah, the United States could launch military attacks against Iran served as the trigger. However, it was reported that the talks have not officially ended and additional consultations will continue.
Net selling of domestic stocks by foreign investors also played a role. When foreigners sell domestic stocks and exchange the proceeds into dollars, dollar demand increases and the won-dollar rate tends to rise. Foreign investors dumped 2.2551 trillion won that day. They were net buyers of more than 3 trillion won last week but turned back to selling. Foreign investors have net sold more than 116 trillion won so far this year.