Seoul: The South 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, following reports of U.S. and Iran trading strikes after an Iranian projectile hit a cargo ship in the Strait of Hormuz last week.

According to Yonhap News Agency, the won fell to as low as 1,539.7 won per dollar during morning trading but recouped some losses amid reports that Washington and Tehran would renew talks. However, analysts indicated that foreign sell-offs of local stocks might further weaken the Korean currency. The benchmark Korea Composite Stock Price Index slumped more than two percent to 8,253.86 points by 9:52 a.m.

Foreign investors sold a net 1.3 trillion won worth of local stocks at one point in the morning, contributing to the pressure on the won. The ongoing geopolitical tensions and market reactions are being closely monitored, as they impact both the currency and stock markets in South Korea.