Seoul: The South Korean won weakened against the U.S. dollar on Tuesday, driven by rising global oil prices amid renewed military tensions in the Middle East. The currency was quoted at 1,345.6 won per dollar at 3:30 p.m., marking a decline of 5.1 won from the previous session's close.
According to Yonhap News Agency, the increase in oil prices is attributed to escalations between the United States and Iran in the Middle East. This development saw West Texas Intermediate crude surpassing US$94 per barrel, reaching its highest level in approximately three months. The surge in oil prices typically pressures the won by boosting the demand for dollars needed for South Korea's crude imports. The country is heavily reliant on foreign sources to fulfill nearly all its energy requirements.
Furthermore, the recent strong rebound of the won has prompted local importers to purchase more of the U.S. currency. Traders are anticipated to closely monitor U.S. inflation data, which could provide insights into the Federal Reserve's future monetary policy decisions.