Seoul: The South Korean currency experienced a significant rebound against the U.S. dollar on Tuesday, following a steep decline the previous day. This recovery came after U.S. President Donald Trump suggested a potential resolution to the ongoing conflict in the Middle East.

According to Yonhap News Agency, the won was quoted at 1,469.3 per dollar, rising 26.2 won from the previous session's rate of 1,495.5 won. This marked the currency's first gain in three trading sessions. The won had hit its lowest level since March 12, 2009, amid concerns tied to the global financial crisis of that time.

The recent weakening of the won was in line with a broader dollar rally, fueled by risk-off sentiment following U.S.-Israeli military actions against Iran. Additionally, foreign investors' sell-offs in the local stock market contributed to the currency's decline.

President Trump's statements provided some relief by easing fears of a prolonged regional conflict and possible disruptions to global oil supplies. Furthermore, news that the Group of Seven major economies were ready to implement measures in response to rising global oil prices helped improve market sentiment.

"Volatility in the foreign exchange and financial markets is likely to continue depending on developments in the Middle East. If the war drags on and high oil prices persist, the current account surplus could shrink, which could further weaken the local currency," Lee Min-hyuk, an economist at KB Kookmin Bank, explained.

The benchmark Korea Composite Stock Price Index (KOSPI) also saw a significant increase, surging 5.35 percent to 5,532.59 on Tuesday. This rally came after a sharp decline in the previous session, driven by strong foreign buying.