South Korean Won Trims Gains

The South Korean won fell half a percent to around 1,454 per dollar on Thursday, trimming some gains but remaining near its strongest level in over two months, as investors booked profits after the recent rally. The currency had strengthened recently on improved global risk sentiment and robust domestic equity performance. Despite the modest pullback, broader support remained intact as signs of progress in US–Iran peace negotiations helped limit demand for the dollar and supported Asian currencies overall. Korea’s strong external position also continued to provide structural support, with record first-quarter exports led by semiconductors, where shipments surged 139% year-on-year on strong AI-driven demand. At the same time, strength in the KOSPI, which remains near record highs, helped sustain expectations of equity-related inflows, keeping the won broadly supported.

The South Korean Won touched 1454.00 against the USD, the highest since March 2026. Over the past 4 weeks, US Dollar South Korean Won lost 2.71%, and in the last 12 months, it increased 4.13%.

The South Korean won rose toward 1,446 per dollar, rebounding to its strongest level in over two months, amid easing geopolitical risk and improved external conditions. US President Donald Trump signaled a pause in maritime operations in the Strait of Hormuz while negotiations with Iran continue, reducing fears of prolonged disruption in a key global oil shipping route and pushing crude prices lower. Lower oil prices improve import cost expectations and soften external balance pressures for South Korea, easing depreciation risks for the won. Domestic inflation rose to a 21-month high on fuel costs tied to earlier energy price spikes, but remains driven mainly by import pass-through rather than demand pressures, limiting overheating concerns while keeping monetary policy expectations broadly stable. The currency also benefited from stronger foreign inflows into Korean assets amid improved global risk appetite, as investors added to local equities, reinforcing FX demand for the won.