South Korean Won Hits Near 17-year Low

The South Korean won breached the 1,500-per-dollar mark, reaching its weakest level since early 2009, as investors flocked to the US dollar amid escalating geopolitical tensions in the Middle East. Pressure on the currency intensified after US President Donald Trump indicated that Washington expects its military campaign against Iran to last four to five weeks, while emphasizing that US forces have the capacity to extend operations if necessary. Amid growing uncertainty, the Bank of Korea convened an emergency task force meeting Tuesday to assess potential spillovers to domestic financial markets. Governor Rhee Chang-yong and officials reviewed the impact of the US-Israel strikes on Iran over the weekend on domestic and global markets, focusing on contingency plans under various scenarios. The Bank of Korea said it will maintain around-the-clock market monitoring with its overseas offices and stands ready to take action if necessary.

The US Dollar exchange rate rose above 1500 South Korean Won in the foreign exchange interbank market.

The South Korean Won touched 1491.00 against the USD, the lowest since March 2009. Over the past 4 weeks, US Dollar South Korean Won gained 1.95%, and in the last 12 months, it increased 2.53%.