(LEAD) Korean won drops to fresh 17-yr low over oil supply woes, foreign stock sell-off

Published on March 31, 2026

SEOUL, March 31 (Yonhap) — The South Korean currency fell sharply to a 17-year low today, driven over oil supply and a wave of foreign stock sell-offs. The won closed at 1,350 per U.S. dollar, marking its weakest level since 2006 and raising alarm among economists and investors alike.

The latest drop comes as markets react to tightening global oil supplies, exacerbated and production cuts from key oil-producing nations. As oil prices spike, fears of inflation and rising living costs have led to a sell-off in stocks, particularly among foreign investors who have significantly reduced their positions in the South Korean equity market.

The weakening of the won is attributed not only to external factors but also to domestic economic conditions. South Korea’s economic indicators have shown signs of slowing growth, prompting concerns about the nation’s financial stability. Analysts suggest that the interplay of these factors is creating a challenging environment for the won, which has struggled to maintain momentum in recent months.

In an effort to counter this downward trend, market experts are urging the South Korean government to assess its foreign exchange policies and consider the implications of global economic shifts. The Bank of Korea is under pressure to respond, with calls for potential interventions to stabilize the currency and reassure investors.

As the situation evolves, the focus remains on how both domestic and international market dynamics will influence the won’s trajectory in the coming weeks. With investors wary, the Korean won’s performance will be a key indicator of economic health and investor confidence in South Korea’s future prospects.

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