FX.co ★ South Korean Won Extends Rally

The South Korean won appreciated to approximately 1,400 per dollar, continuing its upward momentum from the prior session. This movement was encouraged by reports of currency discussions between the US and Korea, along with indications that the Trump administration might be amenable to a weaker dollar, improving market sentiment. The won's earlier fluctuations mirrored a similar rise in Taiwan’s dollar, which was partly stimulated by news suggesting that the US is advocating for a softer greenback against Asian currencies as part of trade discussions with significant Pacific exporters. Nevertheless, experts warned that the ongoing trade tensions coupled with domestic uncertainties could restrict further appreciation of the won in the short term. This is further compounded by the current political uncertainty affecting market sentiment, as presidential hopefuls engage in contentious exchanges rather than focusing on tangible policies. Investors are now closely watching for further developments as US Trade Representative Greer and Seoul’s trade chief are set to meet during the APEC meeting to continue talks that began in Washington last month.