The South Korean won fell sharply past the 1,500-won level against the US dollar on Thursday as global oil prices surged amid escalating Middle East tensions. It opened at 1,505 won per dollar, down 21.9 won from the previous session, breaching the psychologically and technically critical threshold.
On Thursday, the South Korean won fell markedly past the 1,500-won level against the US dollar as global oil prices surged amid intensifying Middle East tensions. The won opened at 1,505 per dollar, down 21.9 won from the previous session, breaching the psychologically and technically critical 1,500-won threshold first touched intraday on Monday—the first time since March 2009. Global oil prices rose more than 5 percent on Wednesday (US time) following Israel's attack on natural gas facilities linked to Iran's South Pars field, the world's largest gas field. Iran's Revolutionary Guard threatened to target oil and gas facilities in Qatar, Saudi Arabia, and the United Arab Emirates, heightening risks of energy supply disruptions, according to foreign media reports. Federal Reserve Chair Jerome Powell noted at a press conference after holding the benchmark rate steady at 3.5-3.75 percent for the second time that the oil price surge has increased inflationary pressures, signaling caution on further rate cuts, with projections for one cut this year. The US Dollar Index climbed above 100. South Korea's foreign exchange and stock markets have shown heightened volatility since early this month following US-Israeli attacks on Iran.
