South Korean Won Trading Hits Record $13.9B Daily Volume as Iran War Drives Currency Volatility

Average daily won-dollar spot trading surged to $13.92 billion in March, the highest since records began and well above the sub-$10 billion norm of the prior two decades. Intraday swings averaged 11.4 won per dollar, the widest since November 2022. The won weakened toward 1,540 per dollar as foreign investors fled Korean equities. South Korea's strategic petroleum reserves cover only 26 days of consumption, with 70% of crude imports routing through the Hormuz chokepoint. Analysts warn the won could weaken to 1,600/dollar if the conflict extends beyond April.