Seoul: The South Korean currency appreciated against the U.S. dollar for a second straight session on Wednesday, as investors closely monitored the Federal Reserve's rate-setting meeting outcome amid ongoing tensions in the Middle East. The won commenced trading at 1,487 per dollar, marking an increase of 6.6 won compared to the previous session.
According to Yonhap News Agency, the currency had earlier dipped to its lowest point since March 10, 2009, on Monday due to rising tensions in the Middle East, momentarily hitting the significant 1,500-won mark for the first time in 17 years. However, it saw a recovery on Tuesday as global oil prices declined.
The U.S. Dollar Index, which evaluates the dollar's value against a collection of six major currencies, was at 99.540 overnight, continuing its decline for the third consecutive day. The index had reached 100.537 on Friday.
The Federal Reserve is set to declare its policy decision on Wednesday (U.S. time), with widespread anticipation that it will maintain current interest rates. The focus remains on the Fed's response to the ongoing crisis.
South Korea's foreign exchange and stock markets have experienced increased volatility since the start of this month following the U.S.-Israeli strike on Iran. There are growing concerns about a prolonged and expanded regional conflict and potential disruptions to global oil supplies.
The Korea Composite Stock Price Index (KOSPI) opened 2.24 percent higher at 5,767.1 on Wednesday, driven by gains in large-cap tech stocks.