The Korean won breached the 1,500 level against the U.S. dollar in after-hours trading once again.
On the 18th, the won-dollar exchange rate stood at 1,502.6 won as of 10:36 p.m. in the Seoul foreign exchange market. This represents a 19.5 won increase from the daytime trading close of 1,483.1 won before extended trading began.
This marks the fourth time this year that the won-dollar exchange rate has surpassed 1,500 won across both daytime and after-hours sessions. During regular trading hours, the rate first exceeded 1,500 won on the 16th.
The dollar's strength stems from escalating Middle East tensions and inflation concerns following a rise in the U.S. Producer Price Index.
As Middle East tensions persist, the United States and Israel struck key Iranian energy infrastructure. In response, Iran threatened to attack oil and gas facilities in Gulf states, rapidly escalating the conflict into an "energy infrastructure war." Iranian state television reported that U.S. and Israeli airstrikes hit the South Pars natural gas field in the south and nearby oil and petrochemical facilities.
South Pars, jointly developed with Qatar, is the world's largest offshore gas field and a cornerstone of Iran's energy industry. If confirmed, this would mark the first direct strike on Iranian upstream production facilities since the war began.
Meanwhile, according to the U.S. Bureau of Labor Statistics, the February PPI rose 0.7% month-over-month, significantly exceeding the Dow Jones consensus forecast of 0.3%. Final demand services prices climbed 1.1% from the previous month, driving the overall index higher. The year-over-year increase was 3.4%.
Core PPI, which excludes volatile energy, food, and trade services prices, rose 0.5% month-over-month, surpassing the 0.3% forecast. The year-over-year increase reached 3.5%, extending the upward trend for ten consecutive months.