South Korean Won Falls to Over 1-Month Low
2026-05-13 02:45
By
Erika Ordonez
1 min. read
The South Korean won weakened to around 1,498 per dollar, extending losses to its lowest level in over a month, as lingering geopolitical tensions and a stronger dollar weighed on sentiment.
President Donald Trump’s comments that the ceasefire was on “massive life support” heightened concerns over escalation risks, keeping Strait of Hormuz supply disruption fears in focus and supporting oil prices.
This increased pressure on South Korea’s energy import costs, given its reliance on imported crude and commodities.
At the same time, hotter-than-expected US inflation reinforced expectations that the Federal Reserve may keep rates higher for longer, supporting US dollar strength and widening yield differentials with Asian currencies, further limiting recovery in the won.
Volatility in Korean equities also weighed on sentiment, as foreign investors trimmed exposure after sharp swings in the KOSPI, while rebalancing flows added to dollar demand and sustained downside pressure on the currency.