The South Korean won weakened sharply against the US dollar Wednesday amid lingering uncertainties in the Middle East and sharper-than-expected US inflation.
The won opened at 1,493.8 won per dollar, down 3.9 won from the previous session’s close.
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 US 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 US-Iran war could continue also pushed up prices of West Texas Intermediate crude above $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.
Amid heightened tensions, the benchmark Korea Composite Stock Price Index fell 2.46 percent to 7,447.17 as of 9:30 a.m. Wednesday, weighed down by heavy foreign selling. (Yonhap)
