Seoul: The South Korean currency gained sharply against the U.S. dollar Wednesday, as investors awaited the outcome of the Federal Reserve's rate-setting meeting amid the ongoing Middle East crisis. The won was quoted at 1,483.1 per dollar, up 10.5 won from the previous session, extending the gaining streak for the second consecutive session.

According to Yonhap News Agency, the currency had fallen to its weakest level since March 10, 2009, on Monday amid escalating tensions in the Middle East, briefly touching the psychologically and technically critical 1,500-won threshold for the first time in 17 years, but later rebounded Tuesday following a decline in global oil prices.

Overnight, the U.S. Dollar Index, which measures the dollar's strength against a basket of six major currencies, stood at 99.540, extending its decline for the third consecutive day. It had risen as high as 100.537 on Friday. The Fed is scheduled to announce its policy decision Wednesday (U.S. time), and the focus is on how it will respond to the ongoing crisis. It is widely expected to hold rates steady.

South Korea's foreign exchange and stock markets have shown heightened volatility since the beginning of this month following the U.S.-Israeli strike on Iran amid deepening concerns over a prolonged and broader regional war and disruptions to global oil supplies. The benchmark Korea Composite Stock Price Index (KOSPI) jumped 5.04 percent to 5,925.03 on Wednesday, driven by gains in large-cap tech shares amid strong foreign buying.