Korean Won Steadies on Market Support

2026-03-05 03:03 By Mariene Camarillo 1 min. read

The South Korean won steadied around 1,481 per dollar, halting a sharp selloff in the previous session that had driven it to a 17-year low, as authorities acted swiftly to curb market volatility amid escalating tensions in the Middle East.

The stabilization followed President Lee Jae Myung’s directive to implement a KRW 100 trillion financial stabilization package during an extraordinary Cabinet meeting in Seoul.

The session was called in response to last weekend’s US–Israeli strikes on Iran, which have intensified geopolitical risks.

The package aims to support liquidity, stabilize markets, and ease immediate depreciation pressure on the won amid rising oil prices and a stronger dollar.

Further lifting sentiment, South Korea’s foreign reserves rose for the first time in three months, reaching $427.62 billion at the end of February, driven by investment returns and the issuance of foreign currency-denominated Exchange Stabilization Fund bonds.



News Stream
South Korean Won Trades Near 2009 Lows
The South Korean won traded around 1,500 per dollar, remaining close to its lowest since March 2009, as hopes for a quick resolution to the Iran war faded, weighing on risk sentiment. In a rare prime-time speech, President Donald Trump gave no clear timeline for ending the Middle East conflict, noting that the US had nearly met its strategic goals in Iran but warning that military operations could intensify over the next two to three weeks. The statement also lifted the US dollar, adding pressure on currencies. Meanwhile, South Korea’s inflation rose to 2.2% in March, above the central bank’s 2% target, highlighting mounting inflationary pressures driven by rising energy costs from the Iran conflict. Earlier this week, Shin Hyun-song, nominee to lead the Bank of Korea, said the central bank should maintain flexible monetary policy to manage these risks but downplayed concerns over the won, noting that market liquidity remains solid.
2026-04-02
South Korean Won Remains Under Pressure
The South Korean won fell to around 1,516, hovering near its weakest levels since 2009, as investors reacted to heightened geopolitical uncertainty ahead of Donald Trump’s scheduled address on the Middle East conflict. Trump indicated that the US could withdraw from Iran relatively quickly while retaining the option for limited strikes, and claimed the US is “better prepared” to handle the economic impact of the conflict. Additional downside pressure came from sustained capital outflows, with heavy net selling by foreign investors, amplifying demand for the greenback and weighing on the currency. The Bank of Korea has signaled readiness to intervene if volatility intensifies, helping to contain further losses. The won is likely to trade in a narrow range in the near term.
2026-04-01
South Korean Won Hits 17-year Low
The South Korean Won touched 1519.00 against the USD, the lowest since March 2009. Over the past 4 weeks, US Dollar South Korean Won gained 4.41%, and in the last 12 months, it increased 3.06%.
2026-03-30