South Korean Won Weakens Toward 17-Year Low

2026-07-01 03:55 By Erika Ordonez 1 min. read

The South Korean won weakened to around 1,557 per dollar, approaching its weakest level since March 2009 near 1,560 touched earlier in June, as persistent foreign selling of local equities and broad demand for the US dollar weighed on the currency.

Overseas investors remained net sellers of Korean stocks for an eighth consecutive session, extending a wave of capital outflows as global funds trimmed exposure to Korean technology shares.

The won also came under pressure from a firmer US dollar after stronger-than-expected US labor market data pushed Treasury yields higher and reinforced expectations that the Federal Reserve could raise interest rates later this year.

Meanwhile, South Korea reported record trade data for June, with exports surging 70.9% year-on-year to $102.25 billion, marking the first time monthly shipments exceeded $100 billion.

The trade surplus widened to a record $36.15 billion, as semiconductor exports nearly tripled to $44.82 billion on robust AI-driven demand.



News Stream
South Korean Won Weakens Toward 17-Year Low
The South Korean won weakened to around 1,557 per dollar, approaching its weakest level since March 2009 near 1,560 touched earlier in June, as persistent foreign selling of local equities and broad demand for the US dollar weighed on the currency. Overseas investors remained net sellers of Korean stocks for an eighth consecutive session, extending a wave of capital outflows as global funds trimmed exposure to Korean technology shares. The won also came under pressure from a firmer US dollar after stronger-than-expected US labor market data pushed Treasury yields higher and reinforced expectations that the Federal Reserve could raise interest rates later this year. Meanwhile, South Korea reported record trade data for June, with exports surging 70.9% year-on-year to $102.25 billion, marking the first time monthly shipments exceeded $100 billion. The trade surplus widened to a record $36.15 billion, as semiconductor exports nearly tripled to $44.82 billion on robust AI-driven demand.
2026-07-01
South Korean Won Remains Under Pressure
The South Korean won traded around 1,555 per dollar, approaching its weakest level since March 2009 near 1,560 reached earlier in June, as persistent foreign equity outflows continued to weigh on the currency. Overseas investors sold a record KRW 7.7 trillion worth of KOSPI shares in the previous session, extending their net selling streak to seven consecutive trading days. At the same time, South Korea's industrial production fell 0.3% in May, with semiconductor output declining 10% due to shipment adjustments and base effects. Meanwhile, renewed diplomatic talks between the United States and Iran eased concerns over potential disruptions to oil supplies through the Strait of Hormuz, improving broader market sentiment and helping limit additional pressure on the won. For June, the KRW weakened by more than 2% against the US dollar.
2026-06-30
South Korean Won Falls to Over 3-Week Low
The South Korean won traded around 1,545 per dollar, extending losses near its lowest level in over three weeks as geopolitical tensions in the Middle East lifted oil prices and boosted demand for the US dollar. The United States launched fresh strikes on Iranian military targets after Tehran attacked shipping near the Strait of Hormuz, while uncertainty over renewed negotiations between the two countries continued to fuel investor caution. Markets also remained focused on the Federal Reserve's annual policy forum in Sintra and key US labor market data due later this week, with expectations for higher-for-longer US interest rates supporting the greenback. Meanwhile, investors monitored President Lee Jae Myung's announcement of large-scale investments in semiconductors, AI, and data centers, as the government and major chipmakers prepared to unveil long-term investment plans aimed at strengthening South Korea's advanced technology sector.
2026-06-29