South Korean Won Remains Under Pressure

The South Korean won hovered around 1,510 per dollar, remaining close to its weakest levels since 2009, as global risks and persistent capital outflows continued to weigh on the currency. Crude oil prices stayed elevated near $100 per barrel amid ongoing Middle East tensions, keeping imported inflation risks prominent. 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. Meanwhile, US President Donald Trump signaled that military operations in Iran could conclude within weeks. While this lifted market sentiment and eased some oil-driven inflation concerns, the currency’s recovery was limited by structural headwinds. 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.

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.