The South Korean won weakened further against the US dollar on Friday as talks between the United States and Iran to end their month-long conflict showed no immediate progress. It opened at 1,508.6 won per dollar, down 1.6 won from the previous session. The escalating Middle East crisis has driven up global oil prices with the Strait of Hormuz effectively closed, hitting import-dependent South Korea.
The Middle East crisis, sparked by US-Israeli strikes on Iran late last month, has escalated into a broader regional conflict, with talks to end the war yielding no tangible results. The South Korean won, which plunged to a 17-year low of 1,517.3 per dollar on Monday, continued weakening: it was quoted at 1,507 won on Thursday, down 7.3 won amid heavy foreign selling of local shares, and opened at 1,508.6 won on Friday, down 1.6 won. The exchange rate has hovered around the key 1,500-won mark. On Thursday (US time), US President Donald Trump 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, insisted no negotiations have been under way and asserted a “natural and legal right” to control the Strait of Hormuz, according to foreign media reports. The White House said on Wednesday (US time) that US-Iran talks have been “productive,” but conflicting signals from Washington and Tehran have deepened uncertainty. With the Strait of Hormuz effectively closed, global oil prices have risen markedly, disrupting supplies and fueling volatility in domestic and global foreign exchange and stock markets. South Korea depends heavily on energy imports. The benchmark KOSPI sank 3.22 percent to 5,460.46 on Thursday.
