FX.co ★ Korean Won Strengthens on Trade Deal Hopes

The South Korean won appreciated close to 1,350 per dollar on Monday, approaching its highest level in nearly eight months. This positive shift in investor sentiment followed an agreement between US President Trump and South Korean President Lee Jae-myung to commence discussions on revising the tariff framework to promote fair and balanced trade. The understanding is anticipated to mitigate tensions from previous disagreements and stabilize crucial export industries, including steel, automobiles, and semiconductors. Furthermore, President Trump has extended an invitation to President Lee for a summit in the United States, with a possible meeting being scheduled during the G7 summit in mid-June. The progress of talks had been postponed due to South Korea's recent political transition, which followed an initial proposal to abolish tariffs under a “July package” prior to the conclusion of Trump’s 90-day tariff suspension.