South Korean Won Gains on Oil Relief and Policy Signals

2026-04-15 04:03 By Erika Ordonez 1 min. read

The South Korean won strengthened to around 1,470 per dollar, remaining near its strongest level since March, amid easing oil prices and domestic policy expectations.

Reports that the United States and Iran are considering further negotiations supported expectations that diplomatic channels remain open and eased concerns over Middle East supply disruptions, contributing to lower crude prices.

This helped relieve imported inflation pressures in South Korea.

Import price data showed a 16.1% month-on-month surge in March, the sharpest rise in nearly three decades, driven by higher oil prices and a weaker won, highlighting the scale of external cost pressures.

The increase underscored Korea’s sensitivity to global energy shocks given its heavy reliance on imported crude.

Bank of Korea governor nominee Shin Hyun-song signaled that persistent inflation pressures may warrant a policy response and warned against excessive won weakness, reinforcing expectations of closer FX monitoring.



News Stream
South Korean Won Falls to Over 1-Month Low
The South Korean won weakened to around 1,497 per dollar, extending losses to its lowest level in over a month, amid renewed risk-off sentiment and a stronger dollar. US President Donald Trump signaled reduced patience in the ongoing standoff with Iran, heightening concerns over potential escalation and keeping Strait of Hormuz supply risks in focus. This triggered broader risk-off in regional equities, with equity weakness and foreign fund outflows adding pressure on the currency. Oil prices were also supported, raising South Korea’s energy import costs given its reliance on imported crude and commodities. At the same time, broader dollar strength, supported by firmer US yields and sustained policy uncertainty, continued to limit recovery in the won. Market attention also remained on discussions between Seoul and Washington regarding a potential currency swap arrangement, seen as a longer-term stabilizing factor for FX volatility, though no concrete progress has been confirmed.
2026-05-13
South Korean Won Hits 4-week Low
The South Korean Won touched 1493.00 against the USD, the lowest since April 2026. Over the past 4 weeks, US Dollar South Korean Won gained 0.9%, and in the last 12 months, it increased 5.33%.
2026-05-12
South Korean Won Slips on Geopolitical Risks
The South Korean won weakened past 1,485 per dollar, reversing sharply after recently touching a more than two-month high near 1,445, amid escalating Middle East tensions and surging oil prices. Negotiations between the US and Iran remained stalled after both sides rejected key elements of each other’s proposals. Iran vowed to “never bow,” while both sides continued exchanging strikes and threats, prolonging instability around the Strait of Hormuz. Brent crude remained elevated above $100 per barrel, reinforcing concerns over higher energy import costs for Korea and supporting broader dollar strength. Safe-haven demand for the US dollar increased as investors reacted to rising geopolitical uncertainty, further pressuring Asian currencies. Meanwhile, markets also noted that Korea’s reduced dependence on Middle Eastern energy has helped partially cushion longer-term vulnerability to oil shocks, though near-term price spikes continue to weigh on sentiment.
2026-05-11