S. Korean currency dips on rising inflationary pressure

Korean won-volatility

S. Korean currency dips on rising inflationary pressure

SEOUL, May 15 (Yonhap) -- The South Korean won weakened to a more than one-month low against the U.S. dollar Friday amid renewed worries about inflation, as higher-than-expected U.S. inflation data raised expectations about a rate hike.

The won opened at 1,494.2 won per dollar, down 3.2 won from the previous session's close.

Extending losses, the won was quoted at 1,500.8 won against the dollar as of 3:30 p.m., falling further to a 9.8 won drop.

It was the first time since April 7 that the won broke below the psychologically important level of 1,500 to the dollar.

In recent days, the won has been under pressure due to stronger-than-anticipated U.S. inflation data and renewed concerns over the U.S.-Iran war that raised global oil prices.

Higher oil prices have pressured the won by increasing demand for dollars for crude imports as South Korea relies heavily on imports to meet its energy needs.

Earlier in the day, South Korea's benchmark KOSPI index briefly surged past 8,000 points but swiftly pared gains.

The KOSPI plunged more than 6 percent as foreign investors sold a net 4.6 trillion won (US$3.1 billion) worth of local stocks at one point in afternoon trading.

A currency exchange office in Myeongdong, downtown Seoul, is seen in this file photo taken April 5, 2026. (Yonhap)

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