Seoul: The South Korean won weakened further against the U.S. dollar on Friday, as no immediate signs of progress emerged from talks between the United States and Iran to end their monthlong conflict. The won was quoted at 1,508.9 per dollar at 3:30 p.m., down 1.9 won from the previous session, extending its losing streak to the third straight session.
According to Yonhap News Agency, the Middle East crisis, which began late last month following U.S.-Israeli strikes on Iran, has escalated into a broader regional conflict, with talks to end the war yielding no tangible results so far. U.S. President Donald Trump on Thursday extended a pause on strikes against Iranian energy facilities by 10 days, through April 6, stating that talks with Tehran are "going very well."
Tehran, however, has refuted this optimism, labeling a U.S. proposal for ending the war as "one-sided and unfair." Iran insists it has "a natural and legal right" to control the Strait of Hormuz, as reported by foreign media.
The ongoing conflict has caused increased volatility in both domestic and global foreign exchange and stock markets. The won has been hovering around the critical 1,500-won mark in recent sessions and had plunged to as low as 1,517.3 won on Monday, marking its lowest level in 17 years.
Global oil prices have surged due to the effective closure of the Strait of Hormuz, which has disrupted global oil supplies. This situation poses a significant challenge for South Korea, a country heavily reliant on energy imports. The benchmark Korea Composite Stock Price Index (KOSPI) also reflected these tensions, falling 0.4 percent to 5,438.87 on Friday due to heavy selling by foreign investors.