(LEAD) Korean won extends losses for 3rd session amid Middle East crisis

▲ This AFP handout image, acquired with MODIS on NASA's Terra satellite and taken on Feb. 5, 2025, shows the Gulf of Oman and the Makran region (C) in southern Iran and southwestern Pakistan, as well as the Strait of Hormuz (L) and the northern coast of Oman (bottom). (Yonhap)

(LEAD) Korean currency-volatility

(LEAD) Korean won extends losses for 3rd session amid Middle East crisis

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SEOUL, March 27 (Yonhap) -- The South Korean won weakened further against the U.S. dollar Friday, as no immediate signs of progress emerged from talks between the United States and Iran to end their monthlong conflict.

The won was quoted at 1,508.9 per dollar at 3:30 p.m., down 1.9 won from the previous session, extending its losing streak to the third straight session.

The Middle East crisis, which began late last month following U.S.-Israeli strikes on Iran, has escalated into a broader regional conflict, with talks to end the war yielding no tangible results so far.

U.S. President Donald Trump on Thursday (U.S. time) extended a pause on strikes against Iranian energy facilities by 10 days, through April 6, saying talks with Tehran are "going very well."

Tehran, however, said a U.S. proposal for ending the war was "one-sided and unfair," while asserting that it has "a natural and legal right" to control the Strait of Hormuz, according to foreign media reports.

Domestic and global foreign exchange and stock markets have experienced heightened volatility. The won has hovered around the psychologically and technically significant 1,500-won mark in recent sessions and had plunged to as low as 1,517.3 won on Monday, marking its lowest level in 17 years.

Global oil prices have risen markedly as the Strait of Hormuz has effectively been closed, disrupting global oil supplies. South Korea depends heavily on imports for energy.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 0.4 percent to 5,438.87 on Friday on heavy selling by foreign investors.

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