2026.05.1804:32:28UTC+00South Korean Won Extends Losses to Over One-Month Low

The South Korean won weakened toward 1,504 per dollar, extending losses to a more than one-month low, as a stronger US dollar and persistent upward pressure on global yields weighed on risk sentiment. The greenback drew support from rising US Treasury yields, with markets reassessing expectations that the Federal Reserve will keep monetary policy restrictive for longer amid still-elevated inflation. Geopolitical tensions in the Middle East further bolstered demand for the dollar, while higher oil prices intensified inflation concerns and underpinned safe-haven flows into US assets. This backdrop continued to pressure regional currencies, including the won, which remains highly sensitive to global liquidity conditions and shifts in external risk appetite. On the domestic front, expectations for prolonged high interest rates in Korea, ongoing foreign portfolio outflows, and recent financial market volatility have also undermined the won, reinforcing cautious investor positioning toward the currency.