FX.co ★ South Korean Won Drops to 17-Year Low

The South Korean won weakened beyond 1,510 per dollar, sliding to its lowest level since March 2009 amid heightened global risk aversion driven by escalating tensions in the Middle East. Markets reacted to missile attacks by Yemen’s Houthi forces on Israel over the weekend, triggering broad foreign outflows from Asian currencies. Rising oil prices, now above $100 per barrel, further pressured the won, intensifying concerns about inflation and the outlook for South Korea’s energy-dependent economy. Short-term liquidity flows also fueled volatility, as non-resident investors scaled back their exposure to local bonds and equities. The won’s decline tracked broader softness in regional currencies, though technical support around the 1,500 level may help contain additional losses. National Pension Service CEO Kim Sung-joo noted that the currency’s prolonged weakness could warrant policy intervention, suggesting a more appropriate equilibrium in the low 1,400s per dollar.