(2nd LD) Korean won plunges to new 17-yr low against U.S. dollar as Iran crisis persists | Yonhap News Agency

## Summary
OK (ATTN: RECASTS headline, lead with latest; ADDS more details, comments in 2-3, 8, 11) SEOUL, March 19 (Yonhap) -- The South Korean currency fell sharply to its weakest level in 17 years against the U.S. dollar Thursday amid intensifying tensions in the Middle East and the subsequent surge in global oil prices. Stock index and won-U.S. dollar exchange rate information is displayed on screens in a dealing room of Hana Bank in Seoul on March 19, 2026. (Yonhap) The weakness came as global oil prices rose more than 5 percent on Wednesday (U.S. time), following Israel's attack on natural gas facilities linked to Iran's South Pars field, the world's largest gas field. At a press conference following the decision to hold the benchmark interest rate steady Wednesday (U.S. time), Powell said the surge in oil prices has increased inflationary pressures, signaling a cautious stance on the timing of further rate cuts. "Escalating tensions in the Middle East have increased upward pressure on oil prices, which has weighed on the won," Lee Min-hyuk, a researcher at KB Kookmin Bank, said. "A stronger U.S. dollar, driven by the Fed's hawkish stance, is also pushing the won lower." The Fed decided to leave the rate unchanged at the 3.5-3.75 percent range for the second consecutive time, while maintained its projection of one rate cut this year. Korean vessels in Hormuz Strait Keywords #Korean currency #volatility Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Police vow zero tolerance for terror threats against BTS comeback concert Most Saved Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life (2nd LD) N.

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(ATTN: RECASTS headline, lead with latest; ADDS more details, comments in 2-3, 8, 11)
SEOUL, March 19 (Yonhap) -- The South Korean currency fell sharply to its weakest level in 17 years against the U.S. dollar Thursday amid intensifying tensions in the Middle East and the subsequent surge in global oil prices.
The won was quoted at 1,501 won per dollar, down 17.9 won from the previous session, marking the lowest level since March 10, 2009, when the won hit 1,511.1 during the global financial crisis.
The foreign exchange and stock markets have shown heightened volatility since the beginning of this month following the U.S.-Israeli attacks on Iran. On Monday, the won touched the 1,500-won level for the first time since March 2009 in intraday trading.
Stock index and won-U.S. dollar exchange rate information is displayed on screens in a dealing room of Hana Bank in Seoul on March 19, 2026. (Yonhap)
The weakness came as global oil prices rose more than 5 percent on Wednesday (U.S. time), following Israel's attack on natural gas facilities linked to Iran's South Pars field, the world's largest gas field.
In response, Iran's Revolutionary Guard threatened to target oil and gas facilities in Qatar, Saudi Arabia and the United Arab Emirates, heightening the risk of further disruptions to energy supplies, according to foreign media reports.
Hawkish remarks by Federal Reserve Chair Jerome Powell regarding the situation in Iran also added pressure on the won.
At a press conference following the decision to hold the benchmark interest rate steady Wednesday (U.S. time), Powell said the surge in oil prices has increased inflationary pressures, signaling a cautious stance on the timing of further rate cuts.
"Escalating tensions in the Middle East have increased upward pressure on oil prices, which has weighed on the won," Lee Min-hyuk, a researcher at KB Kookmin Bank, said. "A stronger U.S. dollar, driven by the Fed's hawkish stance, is also pushing the won lower."
The Fed decided to leave the rate unchanged at the 3.5-3.75 percent range for the second consecutive time, while maintained its projection of one rate cut this year.
The U.S. Dollar Index, which measures the greenback against a basket of six major currencies, climbed well above the 100 level.
"We will closely track FX market conditions and take timely action if the movement of the Korean won deviates excessively from its underlying fundamentals," Finance Minister Koo Yun-cheol said during a meeting on macroeconomic and financial issues earlier in the day.
This AFP file photo shows a view of the phase 12 of the South Pars gas field facilities near the southern Iranian town of Kangan on the shore of the Gulf on Jan. 22, 2014. (PHOTO NOT FOR SALE) (Yonhap)
graceoh@yna.co.kr
(END)
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## Expert Analysis

### Merits
- Korea committed to expanding nuclear, missile programs; poses 'significant' threats to S.

### Areas for Consideration
- Stock index and won-U.S. dollar exchange rate information is displayed on screens in a dealing room of Hana Bank in Seoul on March 19, 2026. (Yonhap) The weakness came as global oil prices rose more than 5 percent on Wednesday (U.S. time), following Israel's attack on natural gas facilities linked to Iran's South Pars field, the world's largest gas field.
- In response, Iran's Revolutionary Guard threatened to target oil and gas facilities in Qatar, Saudi Arabia and the United Arab Emirates, heightening the risk of further disruptions to energy supplies, according to foreign media reports.
- Korean vessels in Hormuz Strait Keywords #Korean currency #volatility Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Police vow zero tolerance for terror threats against BTS comeback concert Most Saved Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life (2nd LD) N.

### Implications
- OK (ATTN: RECASTS headline, lead with latest; ADDS more details, comments in 2-3, 8, 11) SEOUL, March 19 (Yonhap) -- The South Korean currency fell sharply to its weakest level in 17 years against the U.S. dollar Thursday amid intensifying tensions in the Middle East and the subsequent surge in global oil prices.
- Dollar Index, which measures the greenback against a basket of six major currencies, climbed well above the 100 level. "We will closely track FX market conditions and take timely action if the movement of the Korean won deviates excessively from its underlying fundamentals," Finance Minister Koo Yun-cheol said during a meeting on macroeconomic and financial issues earlier in the day.
- This AFP file photo shows a view of the phase 12 of the South Pars gas field facilities near the southern Iranian town of Kangan on the shore of the Gulf on Jan. 22, 2014. (PHOTO NOT FOR SALE) (Yonhap) graceoh@yna.co.kr (END) Related Articles (LEAD) Korean currency volatility not at critical stage: BOK board member (LEAD) (News Focus) Iran crisis sharply weakens Korean won, fueling inflation, economic fallout concerns (2nd LD) Fed holds key rate steady, projects 1 rate cut this year amid Iran war uncertainty (LEAD) Gov't holds meeting on potential evacuation of S.
- Korean vessels in Hormuz Strait Keywords #Korean currency #volatility Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Police vow zero tolerance for terror threats against BTS comeback concert Most Saved Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life (2nd LD) N.

### Expert Commentary
This article covers won, iran, korea topics. Notable strengths include discussion of won. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 810.