FX.co ★ South Korean Won Rebounds on Middle East Ceasefire

The South Korean won appreciated to around 1,480 per dollar, surging to its strongest level since March as easing geopolitical risks and solid external fundamentals bolstered investor confidence. News of a tentative two-week ceasefire between the US and Iran, along with the reopening of the Strait of Hormuz, led to a sharp decline in global oil prices, reducing inflationary pressures and improving risk sentiment across Asian markets. The brighter outlook prompted investors to increase their exposure to regional assets, with the won gaining on renewed capital inflows. Further supporting the currency, South Korea recorded a record monthly current account surplus of $23.19 billion in February, underpinned by robust semiconductor exports and strong overall trade performance. This all-time high surplus underscores the resilience of the country’s external position and strengthens the case for the won’s medium-term stability.