Safe-Haven Demand and Strong Dollar Push USD-KRW Rate Sharply Up to 1,470 Won (Update)

Opened at 1,479.0 Won, Fluctuating Around 1,470 Won in Early Trading
Gains Moderated Compared to Overnight Spike Above 1,500 Won

On March 4, the USD-KRW exchange rate surged to the 1,470-won level as the global dollar strengthened amid military clashes between the United States, Israel, and Iran. However, compared to the sharp spike during overnight trading, when the rate briefly surpassed the 1,500-won mark, the increase has moderated.

On the 4th, the real-time KOSPI and KRW-USD exchange rate were displayed on the electronic board in the dealing room at the Hana Bank headquarters in Jung-gu. Photo by Yonhap News Agency

On this day, the USD-KRW exchange rate in the Seoul foreign exchange market opened at 1,479.0 won, up 12.9 won from the previous trading day, and fluctuated around the 1,475-won level in the early session. After climbing to as high as 1,479.4 won shortly after the market opened, the rate slightly pared its gains, hovering around 1,475.5 won as of 9:14 a.m. This opening price marks the highest level since January 21, when it reached 1,480.4 won.

During overnight trading, the exchange rate broke through 1,500 won for the first time since the global financial crisis. At around 12:05 a.m. on March 4, about 30 minutes after the New York Stock Exchange opened, the rate exceeded 1,500 won. Later, it soared close to 1,506 won before settling at 1,485.7 won, up 19.6 won from the closing price of the regular session in the Seoul foreign exchange market at 3:30 p.m.

In early March 2009, during the global financial crisis, the exchange rate had previously climbed close to 1,600 won. The sharp rise in overnight trading this time is attributed to a rapid strengthening of the dollar combined with low trading volume compared to the regular session, which made the rate spike sharply in a short period. The dollar index, which reflects the value of the dollar against six major currencies, jumped to 99.678 at around 12:20 a.m. on March 4, but pared gains to 99.099 as of 9:14 a.m.

Min Kyungwon, an economist at Woori Bank, said, "The rate is fluctuating around the 1,470-won level due to global risk-off sentiment and the strong dollar." He added, "However, relief can be found in the fact that the exchange rate also pared gains after peaking at 1,506 won, as the dollar showed initial strength but weakened later during the New York session overnight."

This content was produced with the assistance of AI translation services.