Won-Dollar Exchange Rate Opens at 1,505.0 Won Amid Triple Blow of Oil Prices, Inflation, and Fed

Brent Crude Nears $110 After Iranian Refinery Strike

U.S. PPI Surges, Fed Holds Rates Steady, Risk Aversion Intensifies

As international oil prices surged, the won-dollar exchange rate broke through the 1,500-won mark in just three days. This triple blow was driven by the sharp rise in international oil prices, an increase in the U.S. Producer Price Index (PPI), and the Federal Reserve's decision to keep its benchmark interest rate unchanged.

On March 19 in the Seoul foreign exchange market, the won-dollar exchange rate opened at 1,505.0 won, up 21.9 won from the previous trading day.

Overnight, Israel bombed Iran's largest gas field, South Pars, as well as the natural gas processing facility complex in Asaluyeh on Iran's southwest coast, which is directly connected to it. In response, Iran announced that it would launch retaliatory attacks on energy facilities in neighboring countries.

As a result, the May futures price for Brent crude, the international benchmark, closed at $107.38 per barrel, up 3.8% from the previous session.

On the 19th, the won/dollar exchange rate information was displayed in the dealing room at the Seoul headquarters of Hana Bank. At 9:03 a.m. on the same day in the Seoul foreign exchange market, the Korean won exchange rate against the U.S. dollar was 1,501.3 won, up 18.2 won from the previous day's weekly closing price (as of 3:30 p.m.). This is the highest level during weekly trading hours since March 10, 2009 (1,561.0 won), during the financial crisis. Photo by Cho Yongjun, March 19, 2026

The U.S. Producer Price Index (PPI) for February also rose 0.7% from the previous month, exceeding expectations of 0.3%.

Additionally, the Federal Open Market Committee (FOMC) kept the benchmark interest rate unchanged for the second consecutive time at 3.50-3.75%, in line with market expectations. Federal Reserve Chair Jerome Powell noted that the surge in oil prices due to the Middle East crisis had increased inflationary pressures and took a cautious stance regarding the timing of further rate cuts.

Amid growing risk aversion, the dollar strengthened, and the value of the won declined. The dollar index rose to 100.165, once again surpassing the 100 mark.

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