FX.co ★ South Korean Won Eases from Over 2-Month High

The South Korean won traded around 1,483 per dollar, easing from its more than two-month high near 1,475, as escalating tensions in the Middle East bolstered demand for the US dollar. US strikes on Iran and threats by Houthi militants to blockade the Red Sea intensified worries about possible disruptions to major shipping lanes and global energy supplies.

South Korea’s finance ministry said it would closely track developments in the region and maintain measures to secure stable crude oil and naphtha supplies, noting the country’s vulnerability to external energy shocks.

At the same time, the won found support from foreign investor inflows into Korean equities, as a rebound in semiconductor stocks improved overall market sentiment. Government initiatives encouraging major exporters to convert foreign-currency earnings and repatriate overseas funds also boosted dollar liquidity and helped stabilize the currency.