South Korean Won Hits Three-Week Low

2026-06-26 04:45 By Erika Ordonez 1 min. read

The South Korean won weakened to around 1,545 per dollar, extending losses to its lowest level in three weeks as a firmer US dollar and persistent foreign equity outflows weighed on the currency.

The greenback remained supported after US core inflation reached its highest level since October 2023, reinforcing expectations that the Federal Reserve could keep interest rates higher for longer.

At the same time, official data showed offshore investors recorded a record net selloff of Korean stocks in May, underscoring that persistent foreign equity outflows remain a key headwind for the won, even as the country's AI-driven earnings outlook stays favorable.

Limiting further losses, oil prices remained subdued as easing concerns over Middle East supply disruptions improved the outlook for the energy-importing economy.

Authorities also rolled out broader discounts on agricultural and fishery products to keep inflation around 3% in the second half following May's 26-month high of 3.1%.



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South Korean Won Hits Three-Week Low
The South Korean won weakened to around 1,545 per dollar, extending losses to its lowest level in three weeks as a firmer US dollar and persistent foreign equity outflows weighed on the currency. The greenback remained supported after US core inflation reached its highest level since October 2023, reinforcing expectations that the Federal Reserve could keep interest rates higher for longer. At the same time, official data showed offshore investors recorded a record net selloff of Korean stocks in May, underscoring that persistent foreign equity outflows remain a key headwind for the won, even as the country's AI-driven earnings outlook stays favorable. Limiting further losses, oil prices remained subdued as easing concerns over Middle East supply disruptions improved the outlook for the energy-importing economy. Authorities also rolled out broader discounts on agricultural and fishery products to keep inflation around 3% in the second half following May's 26-month high of 3.1%.
2026-06-26
South Korean Won at Over 2-Week Low
The South Korean won traded around 1,545 per dollar, extending losses to its lowest level in over two weeks after MSCI kept South Korea in its emerging-market category. MSCI cited persistent foreign-exchange market accessibility issues, including limited offshore won convertibility and insufficient liquidity during extended trading hours, delaying South Korea's progress toward developed-market status. Additionally, the US dollar remained relatively firm as investors continued to assess the outlook for US monetary policy. Meanwhile, the Bank of Korea reinforced its hawkish stance, signaling that higher interest rates may be needed at an appropriate time as rising housing prices, household debt, and leveraged investments threaten to fuel financial imbalances. Limiting further losses, oil prices declined as improving shipping conditions in the Strait of Hormuz eased concerns over energy supply disruptions, providing some relief for the energy-importing economy.
2026-06-24
South Korean Won Remains Under Pressure
The South Korean won weakened to around 1,535 per dollar, remaining under pressure as the US dollar stayed firm. Markets continued to price in the possibility of further Fed tightening, while investors awaited key US inflation data later this week for additional clues on the interest-rate path. Higher US yields continued to support dollar-denominated assets, reducing the appeal of emerging Asian currencies and contributing to broader strength in the greenback. The won also faced headwinds from renewed Middle East uncertainty, with oil prices rising amid ongoing US-Iran negotiations and concerns over potential disruptions to energy supplies through the Strait of Hormuz. Meanwhile, South Korea’s exports surged 60.4% year-on-year in the first 20 days of June, driven by robust semiconductor shipments amid strong global AI-related demand. This supported expectations of continued foreign-currency inflows from overseas sales.
2026-06-22