South Korean Won Hits 17-Year Low Amid Middle East Conflict Concerns

The South Korean won has fallen to a 17-year low against the U.S. dollar during Asian trading hours, driven by escalating concerns over economic growth due to ongoing Middle East conflicts. According to Jin10, two foreign exchange strategists from OCBC Bank's research department noted in a report that investors are currently more focused on the risks of slowing economic growth rather than a new wave of inflationary pressure from energy shocks. The strategists highlighted that the current sell-off is heavily impacting pro-cyclical currencies like the won. They added that the prolonged nature of the Iran conflict, which has evolved from a mere volatility event to a deep-seated growth risk, is prompting global markets to gradually reprice the situation.