Korean won falls amid oil price volatility as Middle East conflict continues - Yonhap

The South Korean won (KRW) experienced significant depreciation against the U.S. dollar on March 9, 2026, reaching 1,494.55 won per dollar—a level not seen since March 12, 2009, during the global financial crisis. The decline followed a surge in oil prices, with U.S. West Texas Intermediate (WTI) crude surpassing $100 per barrel for the first time since July 2022, driven by escalating military tensions in the Middle East. The U.S. Dollar Index, reflecting the dollar's strength against major currencies, rose 0.59% to 99.54, amplifying the won's weakness amid global risk-off sentiment.

The volatility spilled over to South Korea's financial markets, with the benchmark Korea Composite Stock Price Index (KOSPI) dropping 6.72% to 5,209.75 by mid-morning. Foreign investor outflows and concerns over prolonged regional conflict further pressured the currency. However, the won rebounded slightly on March 10, trading at 1,469.3 won per dollar, as U.S. President Donald Trump suggested the Middle East conflict might conclude soon, easing fears of sustained oil price shocks.

Economists caution that currency instability could persist if geopolitical tensions or high oil prices endure, potentially narrowing South Korea's current account surplus. The KOSPI rebounded 5.35% on March 10, supported by foreign buying, but remains vulnerable to external shocks. Analysts emphasize that the won's trajectory will closely track developments in the Middle East and global energy markets.