South Korean Won Hits 17-Year Low

2026-06-04 11:54 By Joana Ferreira 1 min. read

The South Korean won crossed 1,500 per US dollar, touching its weakest level since March 2009, despite government pledges to curb excessive volatility.

The decline highlights the pressure on Asian currencies as the Iran war persists, with higher oil prices and stalled peace talks driving capital reallocation.

External factors, including a sharp rally in domestic stocks prompting foreign investors to rebalance portfolios, have also weighed on the won.

Meanwhile, data this week showed South Korea’s inflation rate surged in May to its highest level in over two years, while exports grew more than expected to a record $87.75 billion, fueled by a global AI investment boom that pushed chip sales to new highs.

Finance Minister Koo Yun-cheol stated that authorities are closely monitoring FX markets "with a high degree of vigilance to prevent anxiety from spreading" and vowed to take "prompt, necessary measures" in case of excessive market moves.

The won has lost over 6% of its value this year.



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