The South Korean won (KRW) weakened against the US dollar (USD) on Thursday, amidst conflicting reports from the US and Iran concerning discussions aimed at resolving their ongoing conflict.
The won opened trading at 1,503.2 against the dollar, a decrease of 3.5 won compared to the previous trading session.
On Wednesday, the White House indicated “productive” discussions between the US and Iran. However, Tehran maintains that no negotiations with Washington have occurred to date.
Korean and global financial markets, including foreign exchange (forex) and stock markets, have seen increased volatility following US-Israeli strikes on Iran that began late last month, potentially escalating into a larger regional conflict. Investors are closely watching the USD/KRW exchange rate.
The won has fluctuated around the key 1,500-won level in recent trading, briefly falling to 1,517.3 won on Monday, a 17-year low. Market analysts are assessing the long-term impact on the South Korean economy.
