FX.co ★ South Korean Won Retreats from Stronger Dollar

The South Korean won depreciated beyond 1,390 against the U.S. dollar, stepping back from its peak over the past six months. This shift comes as the U.S. dollar gains strength following announcements that trade discussions between the U.S. and China are set to commence later this week. The negotiations will take place in Switzerland this weekend, with key officials from both nations expected to participate. There is also potential for the United States to reveal trade agreements with South Korea and other critical partners as soon as this week, according to Treasury Secretary Scott Bessent's statement on Tuesday. Nonetheless, South Korean Foreign Minister Cho Tae-yul has called on Washington to allocate ample time for tariff negotiations in anticipation of Korea’s upcoming presidential election on June 3. Cho’s comments highlight Seoul's ongoing efforts to secure tariff exemptions and establish a trade deal prior to the expiration of the 90-day tariff suspension on July 8.