The South Korean won strengthened toward 1,470 per dollar, recovering from a recent two-week low, as the dollar softened and risk sentiment steadied after recent volatility. The easing in the greenback provided short-term relief for Asian currencies, including the won, following recent safe-haven demand. In addition, risk sentiment improved across regional markets, with South Korea’s KOSPI extending to fresh record highs, helping reduce near-term dollar demand and supporting a mild recovery in the won. Stronger-than-expected domestic economic growth also remained a supportive backdrop, as it reduced expectations for Bank of Korea rate cuts and offered additional stabilization to the currency. However, gains remain limited as elevated energy prices continue to weigh on Korea’s external outlook. Brent crude above $107 per barrel and ongoing disruption risks in the Strait of Hormuz kept import costs high, reinforcing inflationary pressures through oil and LNG channels.
