South Korean Won Eases
The South Korean won traded around 1,344 per dollar, easing after approaching its strongest level since October 2024, as elevated oil prices and uncertainty over the Federal Reserve’s policy outlook weighed on the currency. Hawkish Federal Reserve comments pointing to the need for further policy tightening to contain inflation continued to pose a risk to the won, as higher US interest rates could keep the dollar supported. Additionally, oil prices remained elevated amid renewed tensions involving Iran, with Brent crude settling at $104.28 a barrel and WTI at $91.49, raising concerns about imported inflation and higher energy costs for South Korea. Meanwhile, comments from President Donald Trump that the US would not attack Iran before the midterm elections helped ease immediate concerns over further escalation, although uncertainty surrounding the situation continued to pose a risk to the won.
The South Korean won traded around 1,344 per dollar, easing after approaching its strongest level since October 2024, as elevated oil prices and uncertainty over the Federal Reserve’s policy outlook weighed on the currency. Hawkish Federal Reserve comments pointing to the need for further policy tightening to contain inflation continued to pose a risk to the won, as higher US interest rates could keep the dollar supported. 49, raising concerns about imported inflation and higher energy costs for South Korea.
Meanwhile, comments from President Donald Trump that the US would not attack Iran before the midterm elections helped ease immediate concerns over further escalation, although uncertainty surrounding the situation continued to pose a risk to the won.