S. Korean Currency Retreats From One-month High As Peace Talks Falter

SEOUL, April 22 (Bernama-Yonhap) -- The South Korean won fell sharply against the United States (US) dollar on Wednesday as high-stakes peace talks between the US and Iran stalled, pushing up global oil prices amid deepening concerns about supply disruptions, Yonhap News Agency reported.

The won opened at 1,479.5 to the dollar, down 11 won from the previous session, retreating from a one-month high reached the previous day.

The weakness came as US Vice President JD Vance postponed his planned trip to Pakistan for a second round of talks with Iran, as Tehran failed to respond to US positions, according to foreign media reports.

The two sides failed to reach an agreement in their first round of talks held earlier this month in Islamabad.

A two-week ceasefire was set to expire on Wednesday (US time), but President Donald Trump announced an extension without specifying a timeframe.

Global oil prices surged, with West Texas Intermediate (WTI) crude futures rising to nearly US$90 per barrel in New York trading, while Brent crude futures climbed more than 3 per cent to around US$98 per barrel.

Higher oil prices tend to weigh on the won by increasing demand for dollars for crude imports.

South Korea relies heavily on overseas supplies to meet its energy needs.

Foreign exchange and stock markets have shown heightened volatility as the war that began in late February, following US-Israeli strikes on Iran, has escalated into a broader regional crisis, stoking fears of inflation amid surging oil prices and an economic slowdown.

-- BERNAMA-YONHAP