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| ▲ Officials work at a dealing room of Hana Bank in Seoul on March 10, 2026. (Yonhap) |
(LEAD) Korean currency-volatility
(LEAD) Korean won rebounds sharply after hitting 17-yr low amid Middle East crisis
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SEOUL, March 10 (Yonhap) -- The South Korean currency rose sharply against the U.S. dollar Tuesday, rebounding from a steep drop the previous day, after U.S. President Donald Trump hinted that the war in the Middle East could end soon.
The won was quoted at 1,469.3 per dollar, up 26.2 won from the previous session's 1,495.5 won, marking its first gain in three trading sessions.
The currency had weakened sharply since last week, falling to its lowest level since March 12, 2009, when the country was reeling from the global financial crisis.
The weakness was in line with a broad dollar rally amid risk-off sentiment following the U.S.-Israeli attacks on Iran. Foreign sell-offs in the local stock market also contributed to the weakening of the Korean won.
But Trump's remarks eased concerns about a prolonged, broader regional war and potential disruptions to global oil supplies.
Also helping sentiment was news that the Group of Seven major economies were preparing to implement "necessary" measures in response to surging global oil prices.
"Volatility in the foreign exchange and financial markets is likely to continue depending on developments in the Middle East. If the war drags on and high oil prices persist, the current account surplus could shrink, which could further weaken the local currency," Lee Min-hyuk, an economist at KB Kookmin Bank, said.
The benchmark Korea Composite Stock Price Index (KOSPI) surged 5.35 percent to 5,532.59 on Tuesday, rebounding from the previous session's sharp decline, driven by strong foreign buying.
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