FX.co ★ South Korean Won Remains Under Pressure

The South Korean won traded around 1,485 per dollar, hovering near a one-month high, as investors reassessed the likelihood of continued talks between the US and Iran. Markets have begun to price in a partial easing of US–Iran tensions, but uncertainty remains high, with recent negotiations delivering no clear outcome and key flashpoints such as the Strait of Hormuz still posing significant risks. As a result, safe-haven demand for the US dollar remains firm, capping any meaningful rebound in the won. At the same time, oil prices—though off their recent peaks—remain elevated relative to pre-shock levels, maintaining Korea’s energy import burden and underpinning structural demand for dollars. In the absence of a strong domestic catalyst, whether from policy measures or capital inflows, the won continues to lack an independent support driver. Meanwhile, the dollar has only softened slightly, leaving the KRW largely range-bound and highly sensitive to headline-driven shifts in global risk sentiment.