The South Korean won experienced a significant drop against the US dollar on Monday, reaching its weakest level since the 2008 global financial crisis. This depreciation is largely attributed to surging oil prices amidst the escalating conflict in the Middle East.
As of 9:45 a.m., the won traded at 1,494.55 won per dollar, a decrease of 19.05 won compared to the previous trading session.
This marks the lowest intraday exchange rate between the won and the dollar since March 12, 2009, when the rate briefly touched 1,500 won per dollar.
Investor confidence has been shaken by the volatility in global energy markets. The US benchmark West Texas Intermediate (WTI) crude oil price exceeded $100 per barrel on Sunday (US time) for the first time since July 2022.
The weakening won is also fueled by a general strengthening of the US dollar, driven by concerns that the US-Israel operation could lead to a protracted regional conflict.
The US Dollar Index, which measures the dollar’s strength against a basket of six major currencies, including the euro and Japanese yen, rose to 99.54, an increase of 0.59 percent from the previous session.
