FX.co ★ South Korean Won Hits Weakest Level Since 2009

The South Korean won weakened past 1,500 per dollar, extending its decline to the lowest level since early 2009, as surging oil prices and a broad risk-off mood weighed heavily on the currency. Crude prices climbed above $100 per barrel, with both West Texas Intermediate and Brent crude rallying sharply after escalating conflict in the Middle East stoked fears of supply disruptions and heightened shipping risks through the Strait of Hormuz. The oil spike has intensified pressure on the won, given South Korea’s heavy dependence on imported energy, amplifying concerns over rising import costs, upward inflationary pressures, and a potential deterioration in the country’s trade balance. At the same time, demand for the US dollar strengthened as investors flocked to safe-haven assets, deepening losses across regional currencies. The KOSPI also slumped, briefly triggering trading curbs, while foreign investors continued to offload Korean equities amid mounting uncertainty.