FX.co ★ South Korean Won Slips Amid Trade Uncertainty

The South Korean won experienced a decline, reaching approximately 1,437 per dollar, as it pulled back from a nearly three-month high observed in the previous session. This shift was primarily driven by renewed uncertainties surrounding US-Korea trade relations, which dampened market sentiment. The initial day of high-level discussions in Washington concluded without achieving a resolution, following President Donald Trump's warning that reciprocal and auto tariffs on Korean goods might be increased back to 25%. This announcement intensified concerns regarding Korea's export outlook and persistent policy risks, which prevented further appreciation of the won despite recent stabilization efforts. Meanwhile, the US dollar received modest support amid global market caution after President Trump indicated that he would soon announce his choice for the next Federal Reserve chair, exerting pressure on regional currencies, including the won. Additionally, a softer risk appetite across equities and cryptocurrencies supported mild dollar demand, prompting profit-taking following the currency's recent rally.