South Korean Won Falls to 17-Year Low Against US Dollar as Middle East Crisis Fuels Market Jitters
The South Korean currency weakened sharply on Monday, sliding to its lowest level in 17 years against the US dollar as rising oil prices and escalating tensions in the Middle East rattled global financial markets.
The won closed at 1,495.5 per dollar at 3:30 p.m. local time, down 19.1 won from the previous trading session. The decline marks the weakest level for the currency since March 12, 2009, when it traded at 1,496.5 won during the global financial crisis.
During intraday trading, the won opened at 1,493 per dollar and later dropped to 1,499.2 won at 10:22 a.m., approaching the 1,500 won mark last recorded during the 2009 financial turmoil.
Market analysts attributed the currency’s slide to heightened investor anxiety triggered by surging global energy prices and uncertainty surrounding the deepening conflict in the Middle East.
The benchmark US crude oil price, West Texas Intermediate (WTI), climbed above $100 per barrel on Sunday for the first time since July 2022, adding pressure on energy-dependent economies.
The won has also been weighed down by a broader surge in the US dollar, as investors moved toward the safe-haven currency amid concerns that the ongoing US-Israeli military operation could escalate into a prolonged regional conflict.
