South Korean Won Nears Multi-Year Low

USDKRW +0.49% USDKRW.TV +0.79% USDKRW +0.75% The South Korean won weakened toward 1,514 per dollar, moving closer to its multi-year low near 1,516 touched in March, as persistent capital outflows and a firm US dollar continued to weigh on sentiment. The currency remained sensitive to oil-linked risk sentiment, with cautious optimism over US–Iran talks easing immediate tail risks but leaving uncertainty over energy flows through the Strait of Hormuz. At the same time, ongoing foreign selling of South Korean equities and rebalancing out of large-cap semiconductor names continued to drive FX outflows, limiting the won’s ability to benefit from improved risk appetite. Broad US dollar strength alongside wide US Korea rate differentials further reinforced upward pressure on USD KRW, while defensive foreign positioning and the equity FX disconnect driven by concentrated gains in a handful of chip stocks without corresponding inflows into broader Korean assets continued to cap KRW recovery.