The South Korean won stabilized around 1,461 per dollar, pausing a sharp selloff from the previous session that had pushed the currency to a 17-year low. The move came as authorities moved quickly to contain market volatility amid escalating tensions in the Middle East.
The turnaround followed President Lee Jae Myung’s order to implement a KRW 100 trillion financial stabilization package at an extraordinary Cabinet meeting in Seoul. The meeting was convened in response to last weekend’s US–Israeli strikes on Iran, which have heightened geopolitical risks.
The package is designed to bolster liquidity, stabilize financial markets, and relieve immediate depreciation pressure on the won in the face of rising oil prices and a stronger US dollar. Sentiment was further supported by the first increase in South Korea’s foreign exchange reserves in three months, which rose to $427.62 billion at the end of February, driven by investment gains and the issuance of foreign currency–denominated Exchange Stabilization Fund bonds.
