FX.co ★ South Korean Won Weakens on Geopolitical Risks

The South Korean won decreased to approximately 1,380 per dollar on Monday, reflecting a decline from the previous session's gains. This shift occurred as investor sentiment grew cautious in light of potential Iranian retaliation following U.S. airstrikes conducted on Sunday. Investors were drawn to safe-haven assets amidst the geopolitical tensions intensified by U.S. actions targeting the Fordow, Natanz, and Isfahan nuclear facilities. Despite American leaders calling for restraint from Tehran, President Donald Trump escalated tensions by publicly hinting at the possibility of regime change in Iran. Moreover, the uncertainty surrounding the approval and execution of the second supplementary budget, currently under consideration by the national assembly, contributed to a restrained market reaction. The expected cash handouts and stimulus initiatives might take time before having a favorable effect on the economy.