South Korean Won Falls Past 1,500 per Dollar for First Time in 17 Years as Oil Prices Surge
Currency Weakens Amid Middle East Conflict and Rising Crude Prices
The South Korean won weakened sharply on Monday, slipping past the 1,500 per dollar mark for the first time in 17 years, as rising global oil prices and geopolitical tensions in the Middle East pressured financial markets.The currency opened at 1,501 won per US dollar, down 7.3 won from the previous session, marking the first time the 1,500 level was breached in intraday trading since March 12, 2009, when markets were grappling with the global financial crisis.
However, the won later recovered some of its losses. By 9:30 a.m., it was trading at 1,494.15 won per dollar, fluctuating in the mid-1,490 range.
Oil Price Surge Adds Pressure on Global Markets
The weakness in the South Korean currency followed a surge in global oil prices after US President Donald Trump indicated that the war with Iran could continue for several more weeks. He also called on the international community to help reopen the Strait of Hormuz, a crucial route for global oil shipments.As tensions escalated, Brent crude, the global benchmark, climbed 2.9 percent to around $106.12 per barrel, while US crude prices rose above $100 per barrel.
The conflict has now entered its third week, significantly disrupting global oil supply chains. The Strait of Hormuz, a key maritime passage controlled by Iran, has remained effectively shut since the start of US and Israeli strikes on Iran earlier this month.
South Korean Markets See Increased Volatility
South Korea’s financial markets have experienced heightened volatility in recent sessions due to the escalating geopolitical situation.The Korea Composite Stock Price Index (KOSPI) opened 23.58 points higher, or 0.43 percent, at 5,510.82, rebounding after a sharp decline in the previous trading session.
However, sentiment remained fragile as trading progressed. South Korean stocks moved slightly lower late Monday morning, with the ongoing Middle East conflict and rising crude oil prices weighing on investor confidence.
Mixed Performance Among Large Cap Stocks
In Seoul’s stock market, most large-cap shares traded lower, reflecting broader market caution.However, semiconductor stocks posted gains, providing limited support to the benchmark index during the session.
Wall Street Weakness Adds to Market Caution
Global market sentiment was also affected by weakness in US equities. Major stock indices on Wall Street ended lower on Friday, as investors tracked developments in the Middle East conflict.The S&P 500 declined 0.61 percent, while the Nasdaq Composite fell 0.93 percent.
Meanwhile, Brent crude continued trading above $100 per barrel, as the war in Iran disrupted shipping routes and production in the region, adding further uncertainty to global financial markets.
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