The South Korean won slipped to around 1,470 per dollar on Tuesday, trimming the previous session’s gains amid heightened volatility, as market sentiment remained fragile despite easing Middle East tensions and retreating oil prices. The currency had strengthened on Monday as the dollar weakened after US President Donald Trump indicated that the conflict with Iran might be drawing to a close, triggering a decline in oil prices and tempering inflation worries.
Even so, the won continued to come under selling pressure from foreign investors and a still-firm dollar, while investors stayed cautious in light of ongoing geopolitical risks. Given South Korea’s heavy reliance on imported energy, the recent pullback in crude prices is insufficient to fully alleviate concerns over higher import costs and inflation. Market participants are closely tracking policy responses, including the government’s initiative to secure millions of barrels of crude oil through domestic channels.
