The South Korean won eased to around 1,475 per dollar, retreating from its strongest level in over a month, amid higher oil prices and a stronger dollar. Escalating US–Iran tensions and renewed disruption risks in the Strait of Hormuz, following the seizure of an Iranian vessel and ongoing ceasefire uncertainty, drove crude prices higher, raising concerns over Korea’s import bill and inflation outlook. At the same time, the US dollar firmed as investors moved into safe-haven assets amid weaker risk appetite, adding pressure on emerging Asian currencies, including the won, despite relative resilience in local equities. Separately, outgoing Bank of Korea Governor Rhee Chang-yong noted that exchange rate movements are increasingly shaped by domestic structural flows rather than interest rate differentials, highlighting a gradual shift in FX dynamics. Expectations of continued foreign inflows, supported by Korea’s improving market accessibility, helped limit losses.