South Korean won slides to 1,543 as Middle East oil supply fears weigh on emerging markets

Escalating geopolitical risks in the Gulf are driving a broad repricing of energy-importing currencies, with Seoul's benchmark currency extending its recent slide against the dollar.

By Handelsavisen Newsroom · Automated 2026-07-22 14:09 UTC · 1 min read

The South Korean won weakened against the U.S. dollar on Tuesday, opening at 1,543.1 per dollar, a decline of 2.1 won from the previous close.

The move marks a continuation of selling pressure on the currency, driven by renewed concerns over oil supply disruptions in the Middle East.

This depreciation adds to a broader trend of weakness for the won, which has lost nearly 6% against the greenback in recent weeks.

Investors are increasingly wary of the impact that rising energy costs could have on South Korea’s trade balance, given the country’s heavy reliance on imported crude.

This depreciation adds to a broader trend of weakness for the won, which has lost nearly 6% against the greenback in recent weeks.

The currency’s decline is compounded by sustained selling of local equities by foreign investors, who are rotating out of riskier emerging-market assets amid global uncertainty.

The Kospi index, which fell sharply earlier in the week, remains under pressure as market participants reassess the risk premium associated with Asian equities.