South Korean won weakens sharply on Middle East tensions
SEOUL, June 4 (Yonhap) -- The South Korean won sharply weakened against the U.S. dollar Thursday due to renewed tensions in the Middle East as the United States and Iran engaged in a fresh round of airstrikes.
The won opened at 1,530.8 won per dollar, down 13.6 won from the previous session's close, but recouped some losses after Finance Minister Koo Yun-cheol warned that authorities will take actions to address excessive volatility in the foreign exchange market.
Koo also pledged to take measures to respond to excessive volatility in the bond market, according to the finance ministry.
It was the first time since March 31 that the Korean currency traded below 1,530 won per dollar in intraday trading.
As of 9:49 a.m., the won was traded at 1,527.40 won per dollar, down 7.6 won from the previous session's close.
In terms of closing prices, the Korean currency has traded over the psychologically important level of 1,500 won against the U.S. dollar for the 12th consecutive trading session.
Global oil prices gained as risks grew over military actions between the U.S. and Iran that appeared to face hopes of a ceasefire deal in the Middle East.
