South Korea's Won Hits 17-Year Low on US-Iran Tensions

South Korea's currency plunged to its weakest level in 17 years against the U.S. dollar on Monday, while the benchmark stock index tumbled more than 6 percent, as escalating tensions between the United States and Iran over the Strait of Hormuz fueled investor fears and drove demand for safe-haven assets.

The Korean won traded at 1,517.30 per dollar as of 3:30 p.m. in Seoul, down 16.7 won from Friday's close and marking the lowest rate since March 2009, when it reached 1,549 amid the global financial crisis. The currency opened at 1,504.9 won per dollar but weakened sharply during the session, breaching the psychologically important 1,510 level intraday and hitting a high of 1,511.8. This extended a streak of losses, with the won closing below 1,500 for two consecutive sessions last week for the first time in over a decade.

The downturn reflected heightened geopolitical risks in the Middle East, where U.S. President Donald Trump issued a 48-hour ultimatum to Iran to reopen the Strait of Hormuz, a vital oil shipping route, or face strikes on its energy infrastructure. Iran responded by threatening indefinite closure of the strait and potential attacks on neighboring Gulf states'...