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%.

The South Korean won weakened past 1,525 per dollar, extending losses to its weakest level since March 2009, amid heightened global risk aversion over escalating tensions in the Middle East. Markets reacted to US President Donald Trump’s threat to strike Iran’s oil wells and key export infrastructure if a deal is not reached soon, prompting broad foreign outflows from Asian currencies. Rising oil prices, now above $100 per barrel, added further pressure on the won, stoking concerns over inflation and South Korea’s energy-dependent economy. For the month, the won has lost roughly 5% against the dollar. Policymakers have deployed a mix of interventions, including raising the national pension fund’s hedging ratio, but experts note that options to stabilize the currency are limited amid safe-haven flows into the US dollar. Bank of Korea governor nominee Shin Hyun-song highlighted the need for flexible monetary measures to manage risks.

The South Korean won weakened past 1,505 per dollar, extending losses near its weakest level since March 2009, as persistent Middle East tensions continued to weigh on market sentiment. Conflicting messages between the United States and Iran clouded prospects for a near-term ceasefire, as Washington signaled progress in talks while Tehran denied negotiations, prolonging uncertainty. At the same time, disruptions around the Strait of Hormuz kept global oil prices high and crude and LNG supply risks elevated, straining Korea’s energy-dependent economy. The Bank of Korea warned that the conflict could amplify inflation, slow growth, and heighten foreign exchange volatility, signaling policy caution and suggesting rates may remain at 2.50% at least through August. Foreign investor outflows and rising bond yields further reflected cautious sentiment, while the United States is advancing plans to raise global tariffs, adding trade uncertainty for South Korea’s export-driven economy.