Korean won swings sharply on oil prices, foreign capital outflows

The Korean won has come under heightened volatility against the U.S. dollar this month amid escalating geopolitical tensions in the Middle East, broad dollar strength and persistent foreign capital outflows, analysts said Tuesday. The heightened volatility in the foreign exchange market was reflected in the won-dollar exchange rate fluctuating by nearly 70 won over a span of less than two weeks, with the rate closing at more than 1,500 won per dollar for the second consecutive trading session Monday after touching an intraday best level of 1,439.6 won on May 6. Market watchers attributed the won’s weakness largely to rising geopolitical uncertainty in the Middle East and a broad shift toward safe haven assets. Concerns intensified over the weekend after U.S. President Donald Trump made a social media post on Sunday. “For Iran, time is running out and they must move FAST, or there will be nothing left of them. TIME IS OF THE ESSENCE!” he wrote. Global oil prices extended their upward momentum as worries resurfaced over a prolonged deadlock in negotiations between Washington and Tehr

Original source: Korea Times