FX.co ★ South Korean Won Falls on Dollar Strength

The South Korean won slipped to approximately 1,365 per dollar on Friday, continuing its decline as it mirrored the broad strength of the US dollar. This movement followed a US nonfarm payrolls report that exceeded expectations, subsequently reducing hopes for rate cuts by the Federal Reserve. Despite South Korea recording a substantial current account surplus of $10.14 billion in May—an element that typically supports the won—the global dominance of the US dollar overshadowed this factor. Meanwhile, uncertainty persists in trade circles as the July 9th US tariff deadline approaches. South Korean Trade Minister Yeo is set to visit Washington over the weekend in a last-ditch effort to negotiate an extension of the ongoing three-month trade pause. The results of these discussions are critical as they could influence major exports and further strain the Korean won.