The South Korean won strengthened to around 1,470 per dollar, remaining near its strongest level since March, amid easing oil prices and domestic policy expectations. Reports that the United States and Iran are considering further negotiations supported expectations that diplomatic channels remain open and eased concerns over Middle East supply disruptions, contributing to lower crude prices. This helped relieve imported inflation pressures in South Korea. Import price data showed a 16.1% month-on-month surge in March, the sharpest rise in nearly three decades, driven by higher oil prices and a weaker won, highlighting the scale of external cost pressures. The increase underscored Korea’s sensitivity to global energy shocks given its heavy reliance on imported crude. Bank of Korea governor nominee Shin Hyun-song signaled that persistent inflation pressures may warrant a policy response and warned against excessive won weakness, reinforcing expectations of closer FX monitoring.
