Korean won drops against US dollar on fresh concerns of conflict between US, Iran

The won-dollar exchange rate can be seen on a screen at a dealing room in Hana Bank, Seoul, Monday. Yonhap

The Korean won weakened against the U.S. dollar Monday due to fresh concerns of conflict between the United States and Iran in the Middle East.

The won opened at 1,536.5 won per dollar, down 4.5 won from the previous session, after reports that the U.S. and Iran traded strikes since an Iranian projectile hit a cargo ship in the Strait of Hormuz last week.

At one point during morning trading, the won fell to as low as 1,539.7 won per dollar, but recouped some losses amid reports that Washington and Teheran would renew talks.

However, foreign sell-offs of local stocks are likely to further weaken the Korean currency, some analysts said.

The benchmark Korea Composite Stock Price Index slumped more than two percent to 8,253.86 points as of 9:52 a.m.

Foreign investors sold a net 1.3 trillion won worth of local stocks at one point in the morning.