The South Korean won opened at 1,503.2 against the U.S. dollar on Thursday, down 3.5 won from the previous session, amid mixed signals on U.S.-Iran talks to end their monthlong conflict. The White House said Wednesday that the two sides had held 'productive' discussions, while Tehran insisted no negotiations took place. Global oil prices have surged with the Strait of Hormuz effectively closed, raising concerns for energy-import-dependent South Korea.
SEOUL, March 26 (Yonhap) -- The South Korean won opened at 1,503.2 per U.S. dollar on Thursday, down 3.5 won from the previous session, as mixed signals emerged from the United States and Iran on negotiations to end their monthlong conflict. The White House stated Wednesday (U.S. time) that the two countries had engaged in 'productive' talks, while Tehran insisted that no negotiations with Washington have taken place so far. U.S.-Israeli strikes on Iran, which began late last month, have escalated into a broader regional conflict, heightening volatility in domestic and global foreign exchange and stock markets. The won has hovered around the key 1,500 level recently and plunged to a 17-year low of 1,517.3 on Monday. It recovered to 1,495.2 on Tuesday after U.S. President Donald Trump announced a five-day postponement of threatened strikes on Iranian energy facilities and said negotiations were underway. However, it closed at 1,499.7 on Wednesday, down 4.5 won. Global oil prices have risen sharply as the Strait of Hormuz has been effectively closed, disrupting supplies and fueling concerns over inflation and economic fallout in energy-import-reliant South Korea. Offshore investors sold a net 1.29 trillion won ($863 million) worth of shares on Wednesday, boosting dollar demand. The benchmark KOSPI rose 88.29 points, or 1.59 percent, to 5,642.21. The presidential office and prime minister's office plan to launch emergency economic teams to manage the Middle East crisis response.
