Seoul: The South Korean won weakened further against the U.S. dollar Thursday amid mixed signals from the United States and Iran over negotiations to end their monthlong conflict. The won was quoted at 1,507 won per dollar, down 7.3 won from the previous session, extending its losing streak to the second straight session.

According to Yonhap News Agency, the currency opened at 1,503.2 won and extended losses amid heavy foreign selling of local shares. Risk-aversion sentiment deepened as conflicting signals from Washington and Tehran heightened uncertainty over the outlook for the Middle East crisis. The White House said Wednesday (U.S. time) that the U.S. and Iran have engaged in "productive" talks, while Tehran insisted that no negotiations with Washington have taken place so far.

Domestic and global foreign exchange and stock markets have experienced heightened volatility as U.S.-Israeli strikes on Iran, which began late last month, have escalated into a broader regional conflict. The won has hovered around the psychologically and technically significant 1,500-won mark in recent sessions and had plunged to as low as 1,517.3 won on Monday, marking its lowest level in 17 years.

Global oil prices have risen markedly as the Strait of Hormuz has effectively been closed, disrupting global oil supplies. South Korea is heavily dependent on energy imports. The benchmark Korea Composite Stock Price Index (KOSPI) sank 3.22 percent to 5,460.46.