Tourists pass by a currency exchange shop in Myeong-dong, April 5. Yonhap
The Korean won fell sharply against the U.S. dollar Wednesday as high-stakes peace talks between the United States and Iran stalled, pushing up global oil prices amid deepening woes about supply disruptions.
The won opened at 1,479.5 to the dollar, down 11 won from the previous session, retreating from a one-month high reached the previous day.
The weakness came as U.S. Vice President JD Vance postponed his planned trip to Pakistan for a second round of talks with Iran, as Tehran has failed to respond to U.S. positions, according to foreign media reports.
The two sides failed to reach an agreement in their first round of talks held earlier this month in Islamabad. A two-week ceasefire was set to expire Wednesday (U.S. time), but U.S. President Donald Trump announced an extension without specifying a timeframe.
Global oil prices surged, with West Texas Intermediate crude futures rising to nearly $90 per barrel in New York trading, while Brent crude futures climbed more than 3 percent to around $98 per barrel.
Higher oil prices tend to weigh on the won by increasing demand for dollars for crude imports. Korea relies heavily on overseas supplies to meet its energy needs.
Foreign exchange and stock markets have shown heightened volatility as the war that began late February following U.S.-Israeli strikes on Iran has escalated into a broader regional crisis, stoking fears of inflation amid surging oil prices and an economic slowdown.
Source: Korea Times News
