The KRW/USD exchange rate closed at 1,476.4 won, up 8.3 won from the previous trading day. The market opened at 1,479 won, which was 10.9 won higher than the previous session’s close. Shortly after the market opened, the rate briefly crossed the 1,480 won level before gains narrowed toward the end of daytime trading between 9:00 a.m. and 3:30 p.m.
Market analysts say the depreciation of the Korean won is largely linked to growing concerns about a prolonged conflict in the Middle East. When geopolitical risks increase, investors typically move away from risk-sensitive assets and shift toward safer assets such as the U.S. dollar. This shift tends to weaken currencies like the Korean won.
Rising tensions have also pushed global oil prices higher. Futures for West Texas Intermediate crude oil for April delivery surged 8.51 percent on the New York Mercantile Exchange, closing at $81.01 per barrel. This marks the highest level in about one year and eight months since July 2024.
Meanwhile, Brent crude, the global oil price benchmark, rose 4.93 percent to settle at $85.41 per barrel on the ICE Futures Europe exchange in London.
According to Jeon Kyu-yeon, a researcher at Hana Securities, higher oil prices could increase the cost of crude oil imports for South Korea.
He noted that rising import costs may worsen the country’s terms of trade and reduce its current account surplus. Such developments could increase downward pressure on the value of the Korean won in the foreign exchange market.
