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Won hits 17-year high after breaking 1,560 against US dollar

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By Jane Han
  • Published Jun 6, 2026 2:15 am KST
  • Updated Jun 6, 2026 2:44 am KST
An employee sorts U.S. dollar banknotes at Hana Bank's counterfeit response center in central Seoul, Thursday. South Korea's foreign exchange reserves declined in May as authorities tapped reserves to help stabilize the won, which has come under pressure amid a sharp rise in the dollar. According to the Bank of Korea, the country's foreign reserves stood at $426.99 billion at the end of May, down $880 million from a month earlier. Yonhap

An employee sorts U.S. dollar banknotes at Hana Bank's counterfeit response center in central Seoul, Thursday. South Korea's foreign exchange reserves declined in May as authorities tapped reserves to help stabilize the won, which has come under pressure amid a sharp rise in the dollar. According to the Bank of Korea, the country's foreign reserves stood at $426.99 billion at the end of May, down $880 million from a month earlier. Yonhap

The Korean won climbed above the 1,560-per-dollar mark in overnight trading Friday and early Saturday, reaching its highest level in 17 years as a stronger dollar and continued foreign selling weighed on the currency.

The won rose as high as 1,561.5 per dollar in overnight trading before closing at 1,559.0, according to Seoul foreign exchange market data. The intraday high marked the strongest level for the dollar against the won since March 2009.

The currency had already surged to 1,549.1 per dollar during regular trading Friday before ending the daytime session at 1,539.1. It then accelerated sharply after the release of stronger-than-expected U.S. employment data, breaking through the psychologically significant 1,550 and 1,560 levels in succession.

Market watchers attributed the latest surge to a combination of factors, including a stronger dollar, continued foreign selling of Korean equities and concerns over the economic impact of the prolonged conflict in the Middle East.

The U.S. jobs report reinforced expectations that the Federal Reserve could keep interest rates elevated for longer, boosting the dollar.

Finance authorities have sought to calm markets, warning against excessive volatility and pledging to take action if necessary. However, the won continued to weaken despite the government's verbal intervention efforts.

While economists note that South Korea's economic fundamentals differ markedly from those during the global financial crisis, the return to exchange-rate levels last seen in 2009 has heightened attention on the currency's rapid decline.