The Korean won fell below 1,500 per U.S. dollar early Wednesday for the first time in 17 years since the 2009 global financial crisis, driven by surging demand for the dollar amid escalating Middle East tensions. The exchange rate briefly reached 1,506 before retreating below 1,500, while the benchmark KOSPI plunged over 12 percent. Analysts predict the dollar's strength will persist until geopolitical risks ease.
On March 4, 2026, the Korean won fell below 1,500 per U.S. dollar early Wednesday, marking the first breach of this psychological support level in 17 years since the March 2009 global financial crisis. According to Reuters and other foreign media, the exchange rate surpassed 1,500 around 12:20 a.m., peaking at 1,506 before retreating below the threshold. This movement reflected a sharp dollar surge amid escalating military clashes involving the U.S., Israel, and Iran, prompting investors to flock to the safe-haven currency.
By Wednesday's close, the won traded at 1,476.2 per dollar, down 10.1 won from the previous session and the weakest level since January 20, 2026, when it stood at 1,478.1. The currency had hovered above the key 1,450 threshold in recent weeks after rebounding from a multiyear low near 1,500 late last year, but it has declined sharply this week in tandem with a broad dollar rally fueled by fears that the U.S.-Israel operation could evolve into a prolonged regional war.
"Risk-off sentiment has intensified, boosting demand for the safe-haven dollar. The dollar's strength is likely to persist until geopolitical risks ease," said Park Hyung-joong, an economist at Woori Bank.
Volatility also gripped Korean financial markets, with the benchmark Korea Composite Stock Price Index (KOSPI) plunging 698.37 points, or 12.06 percent, to 5,093.54 on Wednesday, its sharpest-ever decline. The index had hit a record high of 6,307.27 on the previous Thursday before Middle East tensions escalated. The dollar index, measuring the greenback against six major currencies, rose to 99.195, up 0.182 points and its highest since November 2025.
