Korean won hits 17-year low as Middle East tensions, foreign stock selling rattle markets

The won weakened to its lowest level in 17 years against the dollar on Monday, as foreign investors continued to sell local stocks amid renewed tensions in the Middle East.

The won weakened by 13.2 won from the previous session to trade at 1,545.2 won against the greenback at 3:30 p.m., marking the weakest level since March 9, 2009.

The won opened 4.5 won weaker than the previous session to trade at 1,536.5 won against the dollar, following reports that the United States and Iran traded strikes after an Iranian projectile hit a cargo ship in the Strait of Hormuz.

At one point during morning trading, the won weakened to 1,539.7 won against the dollar, but recouped some losses amid reports that Washington and Tehran would renew talks.

However, the won had been under pressure as foreign investors dumped local stocks.

The dollar has remained strong as investors bet on a rate hike by the U.S. Federal Reserve.

On Monday, foreign investors sold a net 7.7 trillion won ($4.9 billion) worth of local stocks.

Foreign investors remained net sellers of local stocks for the seventh consecutive trading session.

The benchmark Kospi fell 0.2 percent to close at 8,394.65.

Yonhap