FX.co ★ South Korean Won Rallies

The Korean won surpassed the 1,400 mark against the USD, showing an appreciation of nearly 3% since the beginning of May. This surge outpaced other Asian currencies, fueled by speculation that US officials engaged in discussions with South Korean counterparts aimed at orchestrating a weaker dollar. This trend mirrors previous movements in the Taiwan and Hong Kong dollars, partly driven by reports of the US promoting a depreciated dollar against Asian currencies as a strategy in trade negotiations with major exporters across the Pacific. Since April, the won has benefited from the easing of tensions in the US-China trade war, which bolstered prospects for key Korean industries and exports. Additionally, the currency gained strength earlier due to growing skepticism about US economic dominance, leading to significant capital inflows into Asian markets.