The South Korean won weakened past 1,505 per dollar, extending losses near its weakest level since March 2009, as persistent Middle East tensions continued to weigh on market sentiment. Conflicting messages between the United States and Iran clouded prospects for a near-term ceasefire, while disruptions around the Strait of Hormuz kept crude and LNG supply risks elevated, straining Korea’s energy-dependent economy. The Bank of Korea cautioned that the conflict could amplify inflation, slow growth, and heighten foreign exchange volatility, signaling policy caution and suggesting rates may remain at 2.50% at least through August. Foreign investor outflows and rising bond yields further reflected cautious sentiment. The United States also advances plans to raise global tariffs, adding trade uncertainty and posing risks to South Korea’s export-driven economy.
44 minutes ago
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