---
title: "Analysis suggests that the Korean won will further weaken, affected by \"risk value shock.\""
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/277871555.md"
description: "Several global major banks predict that the South Korean won will further decline, influenced by rising energy prices and market risk aversion. Although the exchange rate of the won against the US dollar stabilized during the Asian trading session on the 5th, forex options traders generally believe it will continue to weaken. Strategists at Bank of New York Mellon pointed out that risk value shocks have led to massive sell-offs, and the won is expected to fall to 1,570. Traders anticipate that the probability of the won depreciating to 1,550 by June is about 36%. Wells Fargo warned that if market sentiment continues to deteriorate, the won could drop towards the 1,600 level"
datetime: "2026-03-05T03:29:31.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/277871555.md)
  - [en](https://longbridge.com/en/news/277871555.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/277871555.md)
---

# Analysis suggests that the Korean won will further weaken, affected by "risk value shock."

Due to the threat of rising energy prices on economic growth and the impact of market risk aversion, several global major banks predict that the South Korean won will further depreciate. Although the exchange rate of the won against the US dollar stabilized during the Asian trading session on Wednesday (5th), foreign exchange options traders generally believe that the won will weaken further.

Strategists at Bank of New York Mellon pointed out that the risk value shock led to a massive capitulation sell-off and indiscriminate hedging actions on Tuesday (3rd). In the worst-case scenario, the won is expected to fall to around 1,570.

Currently, traders expect a probability of about 36% that the won will depreciate to 1,550 by June. Wells Fargo strategists further warned that if market sentiment continues to deteriorate and oil prices keep rising, the won may face further selling pressure, potentially dropping towards the 1,600 level

### Related Stocks

- [USDU.US](https://longbridge.com/en/quote/USDU.US.md)
- [UUP.US](https://longbridge.com/en/quote/UUP.US.md)

## Related News & Research

- [Cotton Closes Lower on Wednesday](https://longbridge.com/en/news/287832932.md)
- [US debt surge and rising rates spark warnings of lasting burden](https://longbridge.com/en/news/288459103.md)
- [Cotton Bulls Fight Back on Tuesday](https://longbridge.com/en/news/288497230.md)
- [PRECIOUS-Gold slips on bets of higher rates as war fuels inflation fears](https://longbridge.com/en/news/288602019.md)
- [PRECIOUS-Gold gains as Middle East peace optimism pushes dollar, oil prices lower](https://longbridge.com/en/news/288717607.md)