FX.co ★ Korean Won Pauses Slide After Hitting 1,500

The South Korean won stabilized around 1,477 per dollar, pausing a sharp selloff that had pushed it to a 17-year low, as authorities tightened oversight of currency markets amid rising geopolitical tensions. In earlier offshore trading, the won briefly broke above the 1,500-per-dollar level—last seen in March 2009—before recovering as markets reassessed liquidity conditions and official guidance. The central bank stressed that current circumstances differ from past crises, pointing out that dollar liquidity remains ample and that key external risk indicators, such as sovereign borrowing costs and credit default swap premiums, are stable. While cautioning that exchange-rate volatility and broader financial market fluctuations could continue depending on developments in the Middle East, policymakers indicated they stand ready to work with the government to counter excessive currency moves if they diverge significantly from economic fundamentals.