In after-hours trading, the won-dollar exchange rate briefly rose above the 1500 won level, marking the highest since the global financial crisis. Concerns over energy supply disruptions stemming from a blockade of the Strait of Hormuz by Iran triggered weakness in the won.

At 2 a.m. on the 4th (Korea time), the won-dollar exchange rate finished trading at 1485.70 won, up 46.00 won from the previous Seoul FX market close.

By the size of the gain, this was the largest since November 6, 2008 (64.80 won). However, after-hours trading had not yet been introduced at that time.

Relative to 1466.10 won in the regular session today (9 a.m.~3:30 p.m.), it was up 19.60 won.

According to local media, Iraq halted crude production at Rumaila, the second-largest oilfield in the world. This was because export routes were blocked by a blockade of the Strait of Hormuz by Iran.

According to Reuters, Iraqi officials said, “If tankers are unable to move through the Strait of Hormuz, within days we will have to reduce daily oil production by more than 3 million barrels.”

April-delivery West Texas Intermediate (WTI) crude at one point surged more than 9% from the previous session. For energy-dependent South Korea, the possibility of a hit from higher oil prices has also been raised.

As preference for safe-haven assets spread, the Dollar Index (DXY), which reflects the value of the dollar against six major currencies, rose intraday to 99.685, and the won-dollar exchange rate likewise spiked to as high as 1506.50 won (Korea Money Brokerage basis).

It was the first time since March 2009 that the won-dollar exchange rate broke above 1500 won intraday. At that time, amid the fallout from the global financial crisis, it rose to 1570 won.

David Morrison, a senior market analyst at Trade Nation, assessed it as “a sign that the US dollar remains a representative safe-haven currency.”