FX.co ★ South Korean Won Falls to Over 3-Week Low

The South Korean won hovered around 1,545 per dollar, extending losses and trading near its weakest level in more than three weeks as escalating geopolitical tensions in the Middle East pushed up oil prices and bolstered demand for the US dollar. The United States carried out new 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 keep investors on edge. 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 of higher-for-longer US interest rates underpinning the greenback. Meanwhile, investors tracked President Lee Jae Myung's announcement of large-scale investments in semiconductors, AI, and data centers, as the government and major chipmakers prepared to present long-term investment plans aimed at strengthening South Korea's advanced technology sector.