Won hits 1,400 against the dollar to sink to 17-month low

Dollars displayed at Hana Bank’s Counterfeit Notes Response Center in Jung District, central Seoul, on Oct. 6. [YONHAP]

The won depreciated to a 17-month low on Tuesday mid-trading, touching the 1,400-won mark against the dollar amid escalating geopolitical tension in the Middle East.

The local currency traded at 1,400 won against the greenback as of 11:30 a.m. Tuesday according to Seoul Money Brokerage Services, up 16 won from the previous day's closing price. It is the weakest point since November 2022, when the won reached 1,413.5 to the dollar mid-trading.

The won has been plunging to a streak of fresh year-lows as of late with the ongoing armed conflict between Iran and Israel escalating steeply.

The won-dollar exchange rate has surpassed the 1,400 won threshold only during three major financial crises so far: in 1997, 2008, and 2022.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]