The USD/KRW exchange rate is around 1,540 as of Friday in Asia, continuing a five-day upward trend after reaching 1,549, a level not seen since March 2009. Even with assurances from government officials to mitigate excessive market swings, the Korean won continues to weaken.
This persistent decline in the won underscores the significant strain on the currency, aggravated by ongoing geopolitical tensions in Iran, rising oil prices, and stalled peace negotiations, which are leading to a global capital shift.
In response, the Bank of Korea has indicated a likely move toward a tighter monetary policy to tackle rising inflation. Meanwhile, the finance minister has committed to introducing specific measures aimed at stabilizing the foreign exchange market.
Even though the country’s economic fundamentals remain strong, the current account surplus has dipped to $28.29 billion in April 2026. This figure, while lower than last month’s revised record of $37.93 billion, still ranks as the second-largest monthly surplus ever recorded. This slight reduction came as exports soared by 54.5% year-over-year, well above the 16.1% rise in imports, with merchandise surpluses also tightening to $33.88 billion from $35.68 billion in March, despite robust overseas shipment numbers.
Simultaneously, the USD/KRW exchange rate has strengthened as the US dollar retains a solid presence in the international market. Forex traders are closely watching the evolving dynamics related to a potential peace agreement between the US and Iran amid heightened tensions, particularly after Iranian Foreign Minister Abbas Araghchi stated that the strategic Strait of Hormuz falls within Iranian and Omani territorial waters, adding that US military bases in the region are potential retaliation targets.
(A correction was made on June 5th at 3:55 GMT, clarifying the title to reflect a 17-year high rather than a multi-month high.)
