Despite growing uncertainty surrounding negotiations between the United States and Iran, the won-dollar exchange rate opened lower.
On May 11, in the Seoul foreign exchange market, the exchange rate for the Korean won against the US dollar was trading at 1,467.9 won as of 9:15 a.m. The rate opened at 1,466.0 won, down 5.7 won, and has shown a steady trend since.
On May 11 (local time), Iran delivered a proposal to the US through Pakistan, the mediator, which included an immediate ceasefire on all fronts, a halt to US maritime blockades, and guarantees against further attacks.
However, President Donald Trump publicly rejected the proposal, stating on his social media platform Truth Social, "I read the response from the so-called representatives of Iran, and I am not pleased at all."
Previously, the US had proposed a peace plan stating that if Iran allowed passage through the Strait of Hormuz, the US would lift the blockade on Iranian ports within a month.
Despite concerns over the failure of negotiations between the US and Iran, the exchange rate is expected to decline, buoyed by the spillover effects of the stock market's AI rally.
Min Kyung-won, an economist at Woori Bank, explained, "The dollar is showing strength in the Sydney market, and in the early Asian market, speculative long positions on the dollar and adjustments in morning stock prices are likely to lead to a weakening of the won, yuan, and Singapore dollar."
He added, "As the day progresses, risk appetite is expected to recover, and the won may widen its intraday losses in line with a rebound in stock prices. Given that the stock market continued its AI-driven rally despite last week's military clashes between US forces and Iran in the Strait of Hormuz, the domestic market is likely to maintain an upward trend centered around semiconductors."
* This article has been translated by AI.
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