FX.co ★ South Korean Won Slips on Rising Middle East Tensions

On Friday, the South Korean won weakened to approximately 1,365 per dollar, pulling back from a 34-week high as the currency depreciated in response to the strengthening U.S. dollar. This shift occurred as investors turned to safe-haven assets due to rising tensions in the Middle East, which have exerted additional pressure on the global market. Israel's declaration of a nationwide state of emergency and alerts regarding potential missile and drone attacks have heightened geopolitical strains and affected investor confidence. The won's further decline was also influenced by domestic developments, notably President Lee Jae-myung’s proposed reforms in corporate governance. While these plans have fostered market optimism, they have simultaneously aroused concerns regarding the challenges of implementation and possible repercussions on corporate practices.