Seoul: The South Korean won weakened against the U.S. dollar on Wednesday, affected by the growing risk of oil supply disruptions. This risk arose as Iran-backed Houthi militants threatened to target ships in the Red Sea.
According to Yonhap News Agency, the exchange rate for the won was quoted at 1,480.1 won per dollar by 3:30 p.m., marking a decrease of 6.7 won from the previous session. This decline in the won's value came amid renewed tensions in the Middle East, which saw escalating military strikes between the U.S. and Iran.
The situation intensified when the Houthi militia announced a blockade on Saudi Arabia. This move heightened fears that the Red Sea, considered an alternative energy export corridor, might become perilous for commercial shipping, similar to the Strait of Hormuz and the Persian Gulf.
Despite the currency's decline, overseas investors showed interest in local stocks, purchasing a net 2.06 trillion won (approximately US$1.4 billion) worth on the same day. This activity contributed to the benchmark Korea Composite Stock Price Index rising by 0.74 percent, closing at 6,797.7 points.