FX.co ★ 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 tensions in the Middle East pushed oil prices higher and bolstered demand for the US dollar. Risk sentiment deteriorated following reports that Iran had struck Kuwait International Airport and that Israel, together with the United States, signaled readiness to carry out additional strikes if necessary.

The escalation drove Brent crude toward $98 per barrel, heightening concerns about potential supply disruptions in the Gulf and the risk of a further deterioration in South Korea’s external balance, given the country’s heavy dependence on energy imports. The won also came under pressure from persistent foreign equity outflows, with overseas investors net selling roughly 2.5 trillion won in domestic stocks.

However, the currency’s losses were partly limited after Finance Minister Koo Yun-cheol stated that authorities would take “immediate measures” to curb excessive volatility in the foreign exchange market, reinforcing expectations of possible intervention as the won hovered near psychologically important levels.