Korean Won Hits Three-Week Low

2026-03-02 02:06 By Mariene Camarillo 1 min. read

The South Korean won fell to around 1,451 per dollar, hitting a three-week low as the dollar strengthened amid rising geopolitical tensions in the Middle East.

The currency’s decline followed comments from President Donald Trump that US military operations in Iran will persist until strategic objectives are met.

Finance Minister Koo Yun-cheol convened an emergency meeting, warning that escalating military tensions could heighten volatility in global financial and energy markets.

He underscored South Korea’s reliance on Middle Eastern energy and raised concerns about potential instability in the Strait of Hormuz, a key oil transit chokepoint.

Amid these concerns, domestic economic fundamentals provided some reassurance.

South Korea’s exports surged 29% year-on-year in February to $67.45 billion, marking the highest February figure on record, driven largely by robust semiconductor demand amid the artificial intelligence boom.



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Korean Won Hits Three-Week Low
The South Korean won fell to around 1,451 per dollar, hitting a three-week low as the dollar strengthened amid rising geopolitical tensions in the Middle East. The currency’s decline followed comments from President Donald Trump that US military operations in Iran will persist until strategic objectives are met. Finance Minister Koo Yun-cheol convened an emergency meeting, warning that escalating military tensions could heighten volatility in global financial and energy markets. He underscored South Korea’s reliance on Middle Eastern energy and raised concerns about potential instability in the Strait of Hormuz, a key oil transit chokepoint. Amid these concerns, domestic economic fundamentals provided some reassurance. South Korea’s exports surged 29% year-on-year in February to $67.45 billion, marking the highest February figure on record, driven largely by robust semiconductor demand amid the artificial intelligence boom.
2026-03-02
Korean Won Retreats After Multi-Month High
The South Korean won weakened to around 1,437 per dollar, reversing gains as investors booked in profits following multi-month highs. Despite the short-term pullback, domestic economic fundamentals remain solid. January tax revenue rose 13.4% year-on-year to 52.9 trillion won, driven by higher value-added tax and income tax collections, reflecting strong consumer spending, employment growth, and active real estate activity. On the international front, sentiment was bolstered as South Korea deepened strategic economic ties with the United Arab Emirates, agreeing to over US$65 billion in cooperation projects, including $35 billion in defense and $30 billion in investment initiatives. The partnership spans defense, nuclear energy, and potential joint expansion into third-country markets, offering long-term growth opportunities for Korean firms and supporting foreign investment inflows.
2026-02-27
South Korean Won Hits 4-Month High
The South Korean won strengthened to around 1,422 per dollar, marking a four-month high as investor confidence improved following the Bank of Korea’s latest policy decision. The central bank held its benchmark interest rate steady at 2.5% for the sixth consecutive meeting, citing stronger-than-expected economic growth and the need to maintain financial stability. Supporting the currency, the BOK also raised its growth forecast for 2026 to 2%, up from 1.8%, reflecting robust exports and a rebound in private consumption. Separately, the government also tightened oversight of the tariff-rate quota system to curb abuses, designating high-risk items for “intensive management” and requiring importers to prove timely domestic distribution. With about 100 items benefiting from over KRW 1 trillion in annual tariff reductions, the measures aim to bolster price stability and support investor confidence in South Korean assets.
2026-02-26