South Korean Won Hits 8-week Low

The South Korean Won touched 1523.00 against the USD, the lowest since April 2026. Over the past 4 weeks, US Dollar South Korean Won gained 2.93%, and in the last 12 months, it increased 11.56%.

The South Korean won fell past 1,525 per dollar, extending losses to its weakest level since March 2009, as renewed Middle East tensions boosted oil prices and supported demand for the US dollar. Investors turned cautious amid reports that Iran suspended negotiations with the US, fueling fears of further disruptions to global energy markets, with higher crude prices posing a risk to South Korea's trade balance as a major energy importer. However, rate hike expectations provided some support, as South Korea's annual inflation accelerated to a more than two-year high of 3.1% in May, reinforcing bets that the Bank of Korea could move toward tightening in the coming months. Optimism over South Korea's semiconductor sector also remained firm after Nvidia unveiled a new AI-focused chip and discussed AI memory cooperation with SK Group.

The South Korean won weakened to around 1,515 per dollar, extending losses from the previous session amid lingering uncertainty surrounding US-Iran negotiations and higher oil prices. US President Donald Trump said he was in no hurry to finalize a deal with Iran, despite earlier expectations that an agreement could be reached soon, while disagreements over nuclear terms and the reopening of the Strait of Hormuz continued to cloud the outlook. Rising crude prices added pressure on the won, given South Korea's heavy reliance on energy imports. However, losses were tempered by strong export fundamentals, with South Korea's outbound shipments surging 53% year-on-year to a record $87.8 billion in May, driven by a 169% jump in semiconductor exports. Additionally, the KOSPI climbed to a fresh record high amid continued optimism surrounding AI-related investment and technology demand, helping improve risk appetite.