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.



News Stream
South Korean Won Under Pressure Near 17-Year Low
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.
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South Korean Won Falls to Over 17-Year Low
The South Korean won fell to around 1,530 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.
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