South Korean Won Falls to 17-Year Low Against US Dollar Amid Middle East Tensions

The South Korean won sharply fell to its weakest level in 17 years against the U.S. dollar Monday, as foreign investors continued to sell local stocks amid renewed tensions in the Middle East.

The won was quoted at 1,545.2 won per dollar at 3:30 p.m., down 13.2 won from the previous session, marking the weakest level since March 9, 2009.

The won opened at 1,536.5 won per dollar, down 4.5 won from the previous session, after reports that the United States and Iran traded strikes since an Iranian projectile hit a cargo ship in the Strait of Hormuz.

At one point during morning trading, the won fell to as low as 1,539.7 won per dollar, but recouped some losses amid reports that Washington and Teheran would renew talks.

However, the won had been under pressure as foreign investors dumped local stocks.

Also, the U.S. dollar has remained strong as investors bet on a rate-hike by the U.S. Federal Reserve.

On Monday, foreign investors sold a net 7.7 trillion won (US$4.9 billion) worth of local stocks.

Foreign investors remained net sellers of local stocks for the seventh consecutive trading session.

The benchmark Korea Composite Stock Price Index, meanwhile, fell 0.2 percent to close at 8,394.65.