The South Korean won traded near 1,484 per dollar, remaining under pressure as elevated oil prices and a strong US dollar weighed on the currency despite an improvement in global risk appetite. The won failed to participate in the risk-on move that followed the US decision to extend its ceasefire with Iran, underscoring the dominance of external price pressures in the foreign exchange market. Crude prices remained high amid persistent uncertainty around the Middle East conflict, raising Korea’s import bill and reinforcing structural demand for the greenback.
Meanwhile, South Korea’s economy posted a stronger-than-expected 1.7% expansion in the first quarter of 2026, the fastest pace in more than five years. Growth was powered by robust semiconductor exports and a rebound in facility investment and construction activity, though this provided only limited support for the currency and did little to counteract its weakness.