S. Korean won weakens slightly against US dollar amid Middle East uncertainties, US inflation

SEOUL, May 13 (Yonhap) -- The South Korean won weakened slightly against the U.S. dollar Wednesday amid lingering uncertainties in the Middle East and sharper-than-expected U.S. inflation. The Korean won was quoted at 1,490.6 won against the U.S. dollar at 3:30 p.m., down 0.7 won from the previous session. It marked the weakest level since April 7, when the won-dollar rate was recorded at 1,504.2 won. The currency briefly touched the 1,499.9 won level during the day. The currency has shown heightened volatility in recent sessions due to a lack of progress in Washington-Tehran talks to end the war. The won plunged 17.5 won to 1,489.9 won Tuesday, marking its lowest level since April 4, when the won-dollar rate was quoted at 1,504.2 won. Overnight U.S. data showed that consumer prices rose sharply for the second straight month in April, marking the largest annual increase in inflation in nearly three years and raising expectations that the Federal Reserve would keep interest rates unchanged for the time being. Concerns that the U.S.-Iran war could continue also pushed up prices of West Texas Intermediate crude above US$102 per barrel. Higher oil prices have pressured the won by increasing demand for dollars for crude imports as South Korea relies heavily on imports to meet its energy needs. Despite heightened tensions, the benchmark Korea Composite Stock Price Index added 2.63 percent to 7,844.01 on Wednesday, driven by strong gains in tech shares and rising hopes for the upcoming U.S.-China summit talks.