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SEOUL, June 4 (Yonhap) — The South Korean won sharply weakened against the U.S. dollar Thursday due to renewed tensions in the Middle East as the United States and Iran engaged in a fresh round of airstrikes.
The won was quoted at 1,529.7 won per dollar at 3:30 p.m., down 13.3 won from the previous session.
The won opened at 1,530.8 won per dollar, down 13.6 won from the previous session’s close, but recouped some losses after Finance Minister Koo Yun-cheol warned that authorities will take actions to address excessive volatility in the foreign exchange market.
Koo also pledged to take measures to respond to excessive volatility in the bond market, according to the finance ministry.
It was the first time since March 31 that the Korean currency traded below 1,530 won per dollar in intraday trading.
In terms of closing prices, the Korean currency has traded over the psychologically important level of 1,500 won against the U.S. dollar for the 13th consecutive trading session.
Global oil prices gained as risks grew over military actions between the U.S. and Iran that appeared to face hopes of a ceasefire deal in the Middle East.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 1.84 percent to 8,639.41 on Thursday on heavy selling by foreign investors, who sold a net 6.9 trillion won (US$4.5 billion) worth of local stocks.
This file photo shows a sign of the exchange rates of the South Korean won against other currencies at a foreign exchange booth in Myeongdong in Seoul. (Yonhap)
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