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Won hits two-month low of 1,531 to the dollar on renewed tensions with Iran war

Published: 04 Jun. 2026, 18:05

A screen in Hana Bank's trading room in central Seoul shows the Kospi and the dollar-won exchange rate on the afternoon of June 4. The Kospi closed at 8,639.41, down 162.08 points, or 1.84 percent, from the previous session, its first lower close since May 28. [YONHAP]

The won weakened sharply against the dollar on Thursday due to renewed tensions in the Middle East as the United States and Iran engaged in a fresh round of airstrikes.

The won traded at 1,529.7 to the dollar at 3:30 p.m., weaker by 13.3 won from the previous session.

After opening at 1,530.8 won per dollar, weaker by 13.6 won from the previous session's close, the currency recouped some losses after Finance Minister Koo Yun-cheol warned that authorities will take action to address excessive volatility in the foreign exchange market.

Koo also pledged to take measures to respond to excessive volatility in the bond market, according to the finance ministry.

It was the first time since March 31 that the Korean currency traded above the 1,530 won per dollar level in intraday trading.

In terms of closing prices, the won has traded over the psychologically important level of 1,500 won against the dollar for the 13th consecutive trading session.

Global oil prices gained as risks grew over military actions between the United States and Iran, which appeared to face hopes of a cease-fire deal in the Middle East.

The benchmark Kospi dropped 1.84 percent to 8,639.41 on Thursday on heavy selling by foreign investors, who sold a net 6.9 trillion won ($4.5 billion) worth of local stocks.

Yonhap