South Korean Won Holds Steady

2026-05-04 03:51 By Erika Ordonez 1 min. read

The South Korean won held around 1,475 per dollar, remaining near a two-week high, amid expectations of higher interest rates and strong export momentum.

A Bank of Korea deputy governor signaled that it was “time to consider interest rate hikes,” reinforcing a more hawkish policy outlook as inflation remains elevated.

Stronger growth expectations also came from exports above $80 billion for a second consecutive month in April on robust semiconductor shipments, alongside a sustained trade surplus above $20 billion that reinforced steady foreign exchange inflows.

At the same time, expectations that expanded National Pension Service hedging flexibility may help smooth FX volatility added to stability in the currency.

However, gains remained limited by Middle East developments, with ongoing Strait of Hormuz disruptions and reports of an explosion and fire involving a South Korean-operated vessel, alongside elevated energy market volatility weighing on Asia’s external risk environment.



News Stream
South Korean Won Holds Steady
The South Korean won held around 1,475 per dollar, remaining near a two-week high, amid expectations of higher interest rates and strong export momentum. A Bank of Korea deputy governor signaled that it was “time to consider interest rate hikes,” reinforcing a more hawkish policy outlook as inflation remains elevated. Stronger growth expectations also came from exports above $80 billion for a second consecutive month in April on robust semiconductor shipments, alongside a sustained trade surplus above $20 billion that reinforced steady foreign exchange inflows. At the same time, expectations that expanded National Pension Service hedging flexibility may help smooth FX volatility added to stability in the currency. However, gains remained limited by Middle East developments, with ongoing Strait of Hormuz disruptions and reports of an explosion and fire involving a South Korean-operated vessel, alongside elevated energy market volatility weighing on Asia’s external risk environment.
2026-05-04
Korean Won Holds Firm on Softer Dollar
The South Korean won held steady around 1,473 per dollar, retaining recent gains as sentiment improved on a softer dollar and easing oil prices. Market sentiment was influenced by developments surrounding tensions between the United States and Iran, where a fragile ceasefire has largely held despite continued political and military uncertainty. Ongoing discussions about potential peace negotiations have reduced immediate demand for the dollar as a defensive asset, even as risks remain elevated. Separately, sentiment was supported by strong trade data showing South Korea’s exports above $80 billion for a second consecutive month in April, driven by robust semiconductor shipments. The country also recorded a trade surplus above $20 billion for the second straight month, a first on record, despite ongoing global trade uncertainty and Middle East tensions.
2026-05-01
South Korean Won Gains in April
The South Korean won gained 1.3% to around 1,485 per dollar in April, recovering from its weakest level in over a decade at around 1,500 seen in late March. The move was supported by a mild easing in the US dollar as risk sentiment improved following recent volatility, offering short-term relief for Asian currencies after earlier safe-haven demand. Broader regional risk appetite also firmed amid sustained optimism in global technology markets, supporting flows into export-reliant Asian economies such as South Korea. However, gains were partly capped by rising geopolitical tensions in the Middle East and a surge in oil prices toward $120 per barrel following the US-Iran standoff, which raised concerns over Korea’s energy import burden and inflation outlook. The Federal Reserve’s decision to hold rates steady while signaling elevated uncertainty also kept the US dollar supported, limiting further KRW appreciation.
2026-04-30