South Korean Won Rebounds on Middle East Ceasefire

The South Korean won strengthened to around 1,480 per dollar, rebounding sharply to its highest level since March, as easing geopolitical tensions and robust external fundamentals reinforced investor confidence in the won. The announcement of a tentative US-Iran two-week ceasefire and reopening of the Strait of Hormuz triggered a significant retreat in global oil prices, easing inflationary pressures and lifting risk sentiment across Asia. The improved outlook encouraged investors to increase exposure to regional assets, with the won benefiting from renewed capital inflows. Additionally, South Korea posted a record monthly current account surplus of $23.19 billion in February, driven by strong semiconductor exports and overall trade performance. This marked the largest surplus on record, highlighting the country’s resilient external position and reinforcing the won’s medium-term stability.

The South Korean Won touched 1474.00 against the USD, the highest since March 2026. Over the past 4 weeks, US Dollar South Korean Won gained 0.89%, and in the last 12 months, it decreased 0.84%.

The South Korean won rose to around 1,505 per dollar, rebounding from its weakest level since 2009 near 1,517, as easing concerns over global energy disruptions supported sentiment. Developments in the Middle East remained in focus, with tentative progress toward reopening the Strait of Hormuz helping to ease fears of prolonged supply disruptions and extreme oil price volatility. Support for the currency was also linked to Korea’s export outlook, particularly in semiconductors, as expectations of strong earnings and sustained demand for AI-related chips boosted confidence in external balances. Gains in Samsung Electronics and SK hynix reinforced this view, highlighting the sector’s central role in driving foreign inflows. Still, the won’s advance was capped by lingering geopolitical uncertainty after Donald Trump warned of potential military action against Iran if the Strait is not reopened by a set deadline, keeping currency markets cautious amid the risk of renewed volatility.