Seoul: The South Korean won weakened further against the U.S. dollar Friday, as no immediate signs of progress emerged from talks between the United States and Iran to end their monthlong conflict. The won opened at 1,508.6 per dollar, down 1.6 won from the previous 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 (U.S. time) extended a pause on strikes against Iranian energy facilities by 10 days, through April 6, saying talks with Tehran are "going very well." However, Tehran has stated that no negotiations have been under way, while asserting that it has "a natural and legal right" to control the Strait of Hormuz, as reported by foreign media.
Domestic and global foreign exchange and stock markets have experienced heightened volatility. The won has hovered around the psychologically and technically significant 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 risen markedly as the Strait of Hormuz has effectively been closed, disrupting global oil supplies. South Korea depends heavily on imports for energy.