(LEAD) Korean won weakens further against U.S. dollar as Middle East conflict escalates further

▲ Exchange rates are displayed on boards at currency exchange offices in central Seoul on March 29, 2026. (Yonhap)

(LEAD) Korean currency-volatility

(LEAD) Korean won weakens further against U.S. dollar as Middle East conflict escalates further

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SEOUL, March 30 (Yonhap) -- The South Korean won fell against the U.S. dollar Monday as Iran-backed Houthi militants in Yemen joined the monthlong war in the Middle East, stoking fears of further disruptions to global oil supplies.

The won closed at 1,515.7 per dollar, down 6.8 won from the previous session, extending the losing streak to the fourth consecutive session.

The Middle East conflict, which began in late February following U.S.-Israeli strikes on Iran, has escalated into a broader regional crisis.

The Houthis fired missiles at Israel over the weekend, warning they would continue operations until attacks on Iran cease. The development could further disrupt global oil shipping if they target vessels in the Red Sea, a crucial route for global oil and liquefied natural gas (LNG) shipments.

U.S. President Donald Trump said negotiations with Iran to end the war are under way, but Washington has ordered thousands of troops to the region, stoking fears of ground operations.

The U.S. dollar extended gains amid risk-off sentiment.

The dollar index, which tracks the greenback against six major currencies, rose to 100.306, marking a fifth straight session of gains.

The won has hovered around the psychologically important 1,500 level in recent sessions and fell to as low as 1,517.3 on March 23, its weakest level in 17 years.

"The standoff between the U.S. and Iran shows no signs of a breakthrough. Concerns that the Middle East crisis could become prolonged are weighing on the market," Lee Yoo-jung, an analyst at Hana Bank, said.

"Rising global oil prices and heightened risk-off sentiment are likely to put additional pressure on the local currency, while foreign investors' fund outflows are also adding to the weakness of the Korean won."

The benchmark Korea Composite Stock Price Index (KOSPI) fell 2.91 percent to 5,277.3 Monday amid heavy selling by offshore investors.

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