Korean Won Hits Five-Week Low

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

The South Korean won fell to around 1,475 per dollar, its weakest level since January 20, as mounting geopolitical tensions in the Middle East continued to dampen sentiment.

Pressure on the currency intensified after President Donald Trump signaled that Washington anticipates its military campaign against Iran could run for 4 to 5 weeks, while stressing that American forces have the capacity to extend operations if required.

Amid rising uncertainty, the Bank of Korea convened an emergency task force meeting to assess spillovers to domestic financial markets.

Governor Rhee Chang-yong and senior officials reviewed the implications of the coordinated US-Israel strikes for the won, as well as for local bond and equity markets, and discussed policy options under various escalation scenarios.

Meanwhile, traders digested fresh economic data, with South Korea’s Manufacturing PMI easing slightly to 51.1 in February 2026 from 51.2, signaling continued but modest expansion in factory activity.



News Stream
South Korean Won Strengthens Further
The South Korean won strengthened to around 1,351 per dollar, extending its sharp rebound as oil prices continued to fall. US President Donald Trump said a meeting between US and Iranian representatives was “very good,” raising hopes for a diplomatic breakthrough, while oil prices subsequently fell for a sixth straight session, easing inflation concerns and reducing demand for the dollar. Additionally, South Korea’s strong export performance continued to underpin the won, with exports surging 78% year-on-year in the first 20 days of September, driven by a 259% jump in semiconductor exports and boosting dollar inflows. At the same time, the Asian Development Bank raised its 2026 growth forecast for South Korea to 3.2% from 2.6%, citing strong exports and corporate earnings amid the AI boom. However, the dollar remained relatively firm as hawkish Federal Reserve remarks kept markets pricing roughly a 54% chance of another rate hike in October.
2026-09-23
South Korean Won Rebounds
The South Korean won strengthened to around 1,355 per dollar, rebounding from four-week lows as oil prices fell sharply. WTI crude declined 4.5% below $100 a barrel, while Brent fell more than 3% amid hopes for progress in US-Iran diplomacy and a recovery in Saudi oil shipments. The US 10-year Treasury yield also fell back below 5% after reaching recent highs last week, easing demand for the dollar. Additionally, South Korea’s strong export performance continued to underpin the won, with exports surging 78% year-on-year in the first 20 days of September, driven by a 259% jump in semiconductor shipments and boosting dollar inflows. Meanwhile, the dollar remained relatively firm as markets monitored the possibility of another Federal Reserve rate increase later this year. Separately, the Bank of Korea said it would assess inflation, growth and financial stability when determining the timing and pace of further rate hikes.
2026-09-22
South Korean Won Hits 4-week Low
The South Korean Won touched 1389.00 against the USD, the lowest since August 2026. Over the past 4 weeks, US Dollar South Korean Won lost 0.01%, and in the last 12 months, it decreased 0.63%.
2026-09-18