FX.co ★ South Korean Won Rises Over Trade Dialogue Progress with US

The South Korean won appreciated to approximately 1,370 per dollar on Wednesday, driven by optimism surrounding the potential resurgence of trade negotiations with Washington, which aim to finalize tariff reductions by early July. This trend aligns with widespread positive sentiment regarding President Lee Jae-myung's agenda for corporate reform, consistent foreign capital inflows, ongoing governmental stimulus measures, and the Bank of Korea's prudent stance on policy changes. Although the won demonstrated relative resilience, external risks continue to impact market sentiment. The escalation in oil prices, spurred by Middle East tensions, could lead to heightened import costs, while export prices saw a decline in May, indicative of lukewarm global demand. In spite of recent gains, the won remains susceptible to geopolitical instability, trade conflicts, and divergent global monetary policies.