▲ Officials work at a dealing room of Hana Bank in Seoul on March 5, 2026. (Yonhap)

Korean currency-volatility

Korean won rebounds from sharp losses amid Middle East crisis

SEOUL, March 5 (Yonhap) -- The South Korean won rebounded from near a yearly low against the U.S. dollar Thursday as signs of easing turmoil in financial markets emerged amid an ongoing conflict surrounding Iran.

The won was quoted at 1,468.1 won per dollar at 3:30 p.m., up 8.1 won from the previous session, marking the first rebound in four trading sessions.

The currency had tumbled sharply over the previous three sessions to 1,476.2 won per dollar, nearing its lowest level of the year, as the U.S.-Israeli military operation against Iran fueled a broad dollar rally.

"Risk-off sentiment has eased somewhat, and the dollar strength has cooled. Foreign investors' selling of South Korean stocks has also moderated," Hana Bank analyst Lee Yu-jeong said.

"But volatility is expected to continue amid ongoing tensions in the Middle East," she added.

The benchmark Korea Composite Stock Price Index (KOSPI) spiked 9.63 percent to 5,583.9 on Thursday, bouncing back from its largest single-day drop ever of 12.06 percent the previous session.

Analysts said the Iran crisis triggered massive profit-taking, as the KOSPI had been on a bull run and hit a record high of 6,307.27 on Feb. 26, just before the Middle East tensions escalated.

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