South Korean Won Hits 17-year Low

The South Korean won strengthened to around 1,498 per dollar, extending gains for another session on cautious optimism following verbal interventions from authorities aimed at curbing excessive volatility. Government officials, led by Finance Minister Koo Yun-cheol, stated that policymakers stand prepared to deploy all available tools, with round-the-clock monitoring of foreign exchange markets and a commitment to intervene if needed. Sentiment was further underpinned by plans from authorities and the Bank of Korea to conduct financial sector stress tests and prepare to expand a 100 trillion won stabilization program. However, gains were partially capped as the dollar firmed following the Federal Reserve’s decision to keep interest rates unchanged at 3.5–3.75 percent for a second consecutive meeting, while maintaining its projection of just one rate cut this year.

The South Korean Won touched 1509.00 against the USD, the lowest since March 2009. Over the past 4 weeks, US Dollar South Korean Won gained 4.01%, and in the last 12 months, it increased 3.38%.

The South Korean won strengthened to around 1,486 per dollar, pausing recent losses amid a softer greenback, which marked its third consecutive day of decline. Investors remained cautious ahead of the Federal Reserve’s upcoming policy decision, closely monitoring how officials will navigate ongoing global uncertainties, with markets widely expecting interest rates to remain unchanged. The won was further bolstered by signs of improvement in South Korea’s labor market, as February saw the addition of 234,000 jobs, bringing total employment to 28.41 million, a 0.8 percent increase from a year earlier. Meanwhile, market caution persists as Iran confirmed the killing of senior security chief Ali Larijani in an airstrike, prompting Tehran to launch a series of missile and drone attacks against Israel and neighboring states.