Korean won falls against dollar amid oil price surge over supply concerns

The Korean currency fell against the U.S. dollar on Friday as global oil prices surged amid heightened tensions in the Middle East.

The won opened at 1,490.6 per dollar, weaker by 9.4 won from the previous session.

The weakness came as global oil prices spiked again overnight, hovering around $100 per barrel, after Iran's new leader, Mojtaba Khamenei, warned that the Strait of Hormuz would remain closed, raising concerns about supply disruptions and escalating tensions in the Middle East.

The foreign exchange and stock markets have shown high volatility since last week as the U.S.-Israeli attacks on Iran have escalated tensions across the broader region.

On Monday, the local currency fell to 1,495.5 against the greenback, the lowest level since March 12, 2009, when the country was reeling from the global financial crisis.

Higher oil prices put downward pressure on the Korean won as they increase the country's demand for dollars to pay for crude imports. South Korea depends heavily on energy imports.

The benchmark Korea Composite Stock Price Index opened 3.06 percent lower at 5,412.39 on Friday, tracking overnight losses on Wall Street amid concerns about a prolonged war.

Yonhap