South Korean Won Pauses Slide

The South Korean won hovered near 1,495 per dollar, pausing its decline after dropping to its weakest level since 2009 in the previous session following verbal intervention signals from authorities aimed at curbing further losses. South Korea’s Finance Minister Koo Yun-cheol said officials are prepared to act if currency volatility intensifies. After talks with Japan’s finance leadership in Tokyo, he added that authorities are closely monitoring exchange rates and could issue public warnings to ease pressure on the won. Investor sentiment, however, remained fragile as energy markets surged. Oil prices climbed sharply after President Donald Trump indicated that the ongoing confrontation with Iran could persist for several more weeks. The conflict has now stretched into its third week, disrupting oil flows and raising fears of prolonged supply constraints.

The South Korean won weakened just below 1,490 per dollar, extending losses near its weakest level since 2009, as surging oil prices and a broader risk-off mood pressured sentiment. Brent crude jumped above $100 per barrel for the first time since 2022 after Iran’s new leader signaled the Strait of Hormuz should remain closed and attacks on vessels in the region intensified, raising fears of prolonged supply disruptions. Higher energy prices added pressure on the won, as South Korea relies heavily on imported crude, increasing demand for dollars. Global markets also turned risk-averse, with US stocks sliding and Asian equities falling sharply, including the KOSPI. Meanwhile, concerns about the country’s export outlook persisted after the United States launched Section 301 investigations into several major economies, including South Korea, over alleged unfair trade practices tied to excess manufacturing capacity, raising the risk of tariffs on key export sectors.

The South Korean won weakened past 1,485 per dollar, sliding for the third straight session, as fresh trade tensions and elevated oil prices weighed on sentiment. The United States launched a Section 301 investigation into several major economies, including South Korea, China, and Japan, to examine alleged unfair trade practices tied to excess manufacturing capacity. The probe could lead to new tariffs or trade restrictions on export-heavy sectors such as electronics, autos, machinery, steel, and shipbuilding, raising concerns about South Korea’s export outlook and trade surplus. Caution also lingered over volatile energy markets as the Middle East conflict continued to disrupt shipping near the Strait of Hormuz. Meanwhile, authorities have also sought to stabilize supply through a coordinated emergency oil release led by the International Energy Agency, with contributions from the United States and South Korea.