The won-dollar exchange rate against the U.S. dollar was 1,431.8 won at 9 a.m. on the 4th. That was up 2 won (0.13%) from the prior transaction day's weekly closing price.
The rate is expected to hover around 1,430 won on the day. As the United States halted attacks on Iran, risk appetite for assets such as stocks expanded over the safe-haven dollar.
U.S. President Donald Trump said again on the 3rd (local time), "We are currently in talks with Iran." The same day, the Standard & Poor's (S&P) 500 index finished the transaction up 1.48% at 7,600.51 from the prior session. The Nasdaq index rose 2.13%, and the RUSSELL 2000 index climbed 1.85%.
However, some noted that a sharp drop in the rate would be difficult. This is because importers bringing in raw materials from overseas are moving to buy dollars. In addition, investment in U.S. stocks and bonds is growing. When dollar demand increases, the exchange rate rises.
Min Kyung-won, a Woori Bank researcher, said, "Buying interest to purchase dollars on dips is expected to continue to flow in on the day and support the rate," adding, "If foreign investors' net selling of domestic stocks eases, the rate can maintain a stable trend."