(LEAD) Korean won slumps against U.S. dollar amid talks to end Iran war

▲ Contrails of Israeli fighter jets are seen behind a minaret amid escalating hostilities between Israel and Hezbollah in Lebanon on March 24, 2026, in this Reuters photo. (Yonhap)

(LEAD) Korean currency-volatility

(LEAD) Korean won slumps against U.S. dollar amid talks to end Iran war

(ATTN: RECASTS headline, lead; UPDATES figures in paras 2-3; ADDS more details in last 2 paras)

SEOUL, March 25 (Yonhap) -- The South Korean won lost ground against the U.S. dollar Wednesday, erasing earlier gains amid weakened hopes that Washington and Tehran may soon end their prolonged conflict.

The won was quoted at 1,499.7 per dollar at 3:30 p.m., down 4.5 won from the previous session.

The local currency opened at 1,493 per dollar, up 2.2 won from the previous session as U.S. President Donald Trump continued to signal the possibility of a swift end to the ongoing Middle East conflict.

The currency had surged to 1,495.2 won per dollar Tuesday, recovering from a 17-year low of 1,517.3 won in the previous session after Trump said that he had ordered a five-day postponement of threatened strikes on Iranian energy facilities and that negotiations were under way to end the conflict.

Tehran, however, has denied claims that it has been in contact with the United States, calling them an attempt to manipulate energy prices and stock markets, according to foreign media reports.

Domestic and global foreign exchange and stock markets have experienced heightened volatility as U.S.-Israeli strikes on Iran that began late last month have escalated into a broader regional conflict.

Global oil prices have risen markedly as the Strait of Hormuz has been effectively shut since the start of the conflict, disrupting global oil supplies.

Continued foreign sell-offs of local stocks also fueled demand for the greenback. On the main bourse, offshore investors sold a net 1.29 trillion won (US$863 million) worth of shares.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 88.29 points, or 1.59 percent, to close at 5,642.21.

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