South Korean Won Under Pressure Near 17-Year Low
2026-06-04 04:33
By
Erika Ordonez
1 min. read
The South Korean won traded around 1,530 per dollar, hovering near 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 struck Kuwait International Airport and Israel signaled readiness, alongside the US, to carry out further strikes if necessary.
The escalation lifted Brent crude toward $98 per barrel, raising concerns over potential supply disruptions in the Gulf and worsening South Korea’s external balance given its heavy reliance on energy imports.
The currency also faced pressure from sustained foreign equity outflows, with investors net selling about 2.5 trillion won in local shares.
However, losses were partially contained after Finance Minister Koo Yun-cheol said authorities would take “immediate measures” to curb excessive FX volatility, reinforcing expectations of intervention as the won remained near psychologically important levels.