2026.03.2604:28:12UTC+00South Korean Won Extends Losses

The South Korean won weakened beyond 1,505 per dollar, extending losses toward its lowest level since March 2009 as persistent tensions in the Middle East continued to weigh on risk sentiment. Conflicting signals from the United States and Iran have dimmed hopes for a near-term ceasefire, while disruptions around the Strait of Hormuz are keeping crude oil and LNG supply risks elevated, putting additional pressure on South Korea’s energy-dependent economy. The Bank of Korea warned that the conflict could fuel inflation, dampen growth, and increase foreign exchange volatility, reinforcing a cautious policy stance and indicating that interest rates may remain at 2.50% at least through August. Foreign investor outflows and rising bond yields further underscore the risk-off environment. At the same time, the United States is moving ahead with plans to raise global tariffs, adding another layer of trade uncertainty and posing additional risks to South Korea’s export-driven economy.