Korean Won Steadies on Market Support

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

The South Korean won steadied around 1,461 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.



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Korean Won Steadies on Market Support
The South Korean won steadied around 1,461 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.
2026-03-05
Korean Won Pauses Slide After Hitting 1,500
The South Korean won steadied to around 1,477 per dollar, halting a sharp selloff that had driven it to a 17-year low, as authorities intensified oversight of currency markets amid escalating geopolitical tensions. Earlier in offshore trading, the won briefly pierced the 1,500 threshold, a level last seen in March 2009, before stabilizing as markets reassessed liquidity conditions and official signals. The central bank emphasized that current conditions are unlike past crises. It noted that dollar liquidity remains ample, and external risk gauges, including sovereign borrowing costs and credit default swap premiums, remain stable. While warning that exchange-rate swings and broader financial volatility could persist depending on developments in the Middle East, policymakers signaled readiness to coordinate with the government to curb excessive moves should the currency deviate materially from economic fundamentals.
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South Korean Won Hits Weakest Level Since 2009
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.
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