The South Korean won strengthened to around 1,480 per dollar, rebounding sharply to its highest level since March, as easing geopolitical tensions and robust external fundamentals reinforced investor confidence in the won. The announcement of a tentative US-Iran two-week ceasefire and reopening of the Strait of Hormuz triggered a significant retreat in global oil prices, easing inflationary pressures and lifting risk sentiment across Asia. The improved outlook encouraged investors to increase exposure to regional assets, with the won benefiting from renewed capital inflows. Additionally, South Korea posted a record monthly current account surplus of $23.19 billion in February, driven by strong semiconductor exports and overall trade performance. This marked the largest surplus on record, highlighting the country’s resilient external position and reinforcing the won’s medium-term stability.
