South Korean won falls past 1,500 per dollar for first time since 2009

Wednesday 04 March 2026 - 11:05

By: Dakir Madiha

South Korean won falls past 1,500 per dollar for first time since 2009

Asian currencies recorded their steepest losses of 2026 this week as the fallout from coordinated U.S. and Israeli strikes on Iran drove investors toward the U.S. dollar, pushing the South Korean won beyond a key threshold not seen since the global financial crisis.

The won weakened past the psychological level of 1,500 per dollar early Wednesday for the first time since 2009, according to The Korea Times. The currency had already fallen to around 1,466 per dollar on Tuesday, extending a decline that began after Washington and Tel Aviv launched “Operation Epic Fury” on February 28 targeting military facilities across Iran.

A surge in oil prices has been the most immediate economic channel through which the conflict has affected Asian markets. Brent crude jumped as much as 13 percent in early trading on Monday and briefly exceeded $82 per barrel as shipping activity through the Strait of Hormuz collapsed by at least 80 percent, according to the World Economic Forum and maritime intelligence firm Windward.

The disruption followed Iranian threats to target vessels attempting to cross the strategic waterway and production shutdowns by several Gulf producers.

Energy importing Asian economies have felt the pressure quickly. Japan’s yen weakened to a five week low near 157.75 per dollar on Tuesday, reflecting concerns about energy security. Roughly one third of Japan’s energy imports pass through the Strait of Hormuz.

Japan’s finance minister Satsuki Katayama said authorities were monitoring the yen’s depreciation with a strong sense of urgency and warned that currency intervention remained an option.

India’s rupee also slid to a record low of 92.05 per dollar. Meanwhile, China’s yuan reversed earlier gains, falling 0.8 percent on Monday as investors assessed the risk of disruptions to discounted Iranian oil supplies to China.

The surge in energy prices has also complicated expectations for monetary policy across several major economies.

In the United Kingdom, markets reduced the probability of an interest rate cut by the Bank of England at its March 19 meeting to about 69 percent from roughly 80 percent a week earlier. The shift reflects broader inflation concerns linked to higher global energy prices.

Goldman Sachs warned that a prolonged closure of the Strait of Hormuz could push oil prices up by as much as $15 per barrel. Such a scenario would likely widen trade deficits in energy importing economies and force central banks to delay or reconsider planned interest rate cuts.

Analysts say the renewed strength of the dollar reflects not only demand for safe assets but also the relative vulnerability of other economies.

With U.S. President Donald Trump indicating that the military campaign against Iran could last four to five weeks, currency markets appear to be pricing in a prolonged period of geopolitical risk and sustained demand for the dollar.