Dollar surges as Iran conflict pushes won to 17-year low

Mar 04, 2026, 09:59 am

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A display board at the dealing room of Hana Bank headquarters in Seoul shows the won–dollar exchange rate and the KOSPI index on March 3. / Yonhap

The South Korean won weakened sharply against the U.S. dollar overnight, briefly surpassing the 1,500-won mark for the first time in about 17 years as investors flocked to safe-haven assets amid escalating conflict in the Middle East.

According to the Seoul foreign exchange market on March 4, the won–dollar exchange rate closed at 1,485.7 won in overnight trading at 2 a.m. Korea time, up 19.6 won from the previous daytime session.

The currency climbed rapidly during overnight trading and broke through the 1,500-won level around 12:05 a.m., about 30 minutes after the New York stock market opened.

It marked the first time the exchange rate had exceeded 1,500 won since March 2009 during the global financial crisis.

Spike driven by safe-haven demand

The sharp rise in the dollar came as global investors sought safe assets following escalating military conflict between the United States, Israel and Iran.

During the session, the exchange rate briefly surged close to 1,506 won before retreating below the 1,500-won level and finishing the overnight session in the high-1,480-won range.

After the Seoul foreign exchange market opened later in the morning, the won traded around 1,464 won per dollar as of 9:30 a.m., according to market data from Seoul Money Brokerage.

Market participants said heightened geopolitical risks and rising energy prices linked to Middle East tensions are likely to keep volatility high in global currency markets.

#Korean won #US dollar #exchange rate #Middle East conflict