The South Korean Won (KRW) weakened past the critical 1,500 level against the US dollar (USD) on Monday, driven by soaring global oil prices and escalating geopolitical tensions in the Middle East.
The USD/KRW exchange rate opened at 1,501.0, reflecting a 7.3 Won depreciation from the previous trading day.
The Won’s decline is attributed to a significant overnight surge in global oil prices. Prices reached levels not seen since 2022, exceeding $105 per barrel, fueled by concerns surrounding potential prolonged conflict in the Middle East. Statements from US President Donald Trump regarding the situation with Iran and calls for international intervention to ensure the safe passage of oil tankers through the Strait of Hormuz further exacerbated market anxieties.
