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Korean won rebounds from sharp losses spurred by Middle East crisis

Published: 05 Mar. 2026, 19:41

The dollar-won exchange rate is seen displayed on an electronic board at Hana Bank's trading room in central Seoul on March 5. [YONHAP]

The Korean won rebounded from a near yearly low against the U.S. dollar Thursday as signs of easing turmoil in financial markets emerged amid the ongoing conflict surrounding Iran.

The won strengthened by 8.1 won from the previous session to trade at 1,468.1 against the dollar at 3:30 p.m., marking its 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 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 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 Middle East tensions escalated.

Yonhap