The South Korean won weakened past 1,510 per dollar, extending losses to its weakest level since March 2009, amid heightened global risk aversion linked to escalating tensions in the Middle East. The market reacted to missile attacks by Yemen’s Houthi forces on Israel over the weekend, prompting broad foreign outflows from Asian currencies. Rising oil prices, now above $100 per barrel, added further pressure on the won, stoking concerns over inflation and South Korea’s energy-dependent economy. Short-term liquidity flows also contributed to volatility, with non-resident investors reducing exposure to local bonds and equities. The won’s depreciation mirrored weakness in other regional currencies, though technical support near 1,500 could help limit further declines. National Pension Service CEO Kim Sung-joo added that the won’s prolonged weakness may require intervention, citing a more appropriate equilibrium in the low 1,400s.
