▲ An official moves at a dealing room of Hana Bank in Seoul on May 22, 2026. (Yonhap)

Korean won-volatility

S. Korea's currency hits 1 1/2-month low as oil prices climb

SEOUL, May 22 (Yonhap) -- The South Korean won sharply weakened against the U.S. dollar Friday as oil prices climbed over renewed uncertainties surrounding the peace deal between the United States and Iran to end the war in the Middle East.

The won was quoted at 1,517.2 won against the dollar as of 3:30 p.m., down 11.1 won from the previous session's close, hitting its lowest level since April 2.

The won opened at 1,504.7 won per dollar, up 1.4 won from the previous session's close, but pared gains as higher crude prices fueled inflation worries.

Global oil prices rose as a peace deal between warring parties remained elusive, despite some intermittent positive signals. Reports are indicating that Iran is averse to giving up its near-weapons-grade enriched uranium, despite insistence by Washington that such materials must be brought out of the country.

Meanwhile, the won at one point dipped to 1,519.4 won per dollar, but cut some losses after foreign exchange authorities warned that the recent movement of the Korean currency was excessive and that some kind of smoothing action can be taken if the need arises.

Moon Jung-hee, an economist at KB Kookmin Bank, also pointed out that the won faced downward pressure as foreign investors remained net sellers of local stocks and oil prices rose.

Foreign investors sold a net 1.9 trillion won (US$1.2 billion) worth of local stocks on Friday.

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