FX.co ★ South Korean Won Edges Up

The South Korean won strengthened to around 1,480 per dollar, edging higher from the previous session as traders took profits on recent dollar gains, prompting renewed demand for the won. The rebound followed a pullback in the greenback that led investors who had been positioned for further dollar strength to scale back those bets.

Adding support, Bank of Korea data showed resident foreign-currency deposits recorded a record monthly decline in March. This reflected earlier conversions into US dollars during the won’s previous weakening phase, followed by a partial normalization in FX flows as market conditions steadied.

Upside for the won remained limited, however, as the US dollar stayed broadly firm amid stalled US–Iran peace talks, with heightened geopolitical uncertainty sustaining safe-haven demand. Elevated oil prices also continued to pressure the currency, keeping import-related dollar demand strong.

Overall, the move in the won was seen as a short-term positioning adjustment rather than a sign of any fundamental shift in the broader trend of dollar strength.