Seoul: The South Korean won experienced a slight decline against the U.S. dollar on Wednesday, influenced by ongoing uncertainties in the Middle East and unexpectedly sharp U.S. inflation figures.
According to Yonhap News Agency, the won was quoted at 1,490.6 against the U.S. dollar at 3:30 p.m., marking a decrease of 0.7 won from the previous session. This figure represents the weakest level since April 7, when the exchange rate was recorded at 1,504.2 won. During the day, the currency briefly reached the 1,499.9 level.
Recent sessions have shown increased volatility for the won due to stalled negotiations between Washington and Tehran to resolve the ongoing conflict. On Tuesday, the won fell by 17.5 to 1,489.9, the lowest since April 4 when the rate was similarly recorded at 1,504.2.
Overnight data from the U.S. indicated a sharp rise in consumer prices for the second consecutive month in April, marking the largest annual inflation increase in nearly three years. This has led to expectations that the Federal Reserve may keep interest rates unchanged for now.
Concerns about the continuation of the U.S.-Iran conflict have also driven the price of West Texas Intermediate crude above $102 per barrel. Rising oil prices have pressured the won by increasing the demand for dollars needed for crude imports, as South Korea relies heavily on energy imports.
Despite these tensions, the benchmark Korea Composite Stock Price Index increased by 2.63 percent to 7,844.01 on Wednesday. This rise was driven by strong performance in tech shares and growing optimism regarding the upcoming U.S.-China summit talks.