FX.co ★ South Korean Won Firms Ahead of US Tariff Talks

The South Korean won has remained stable beyond 1,395 against the US dollar, following gains over the last two trading sessions, as investors keenly anticipate developments in the ongoing tariff discussions between the US and Korea. At the APEC trade ministers' meeting in Jeju Island, scheduled progress includes South Korean Trade Minister Ahn Duk-geun's meeting with US Trade Representative Jamieson Greer. The aim is to advance toward a proposed tariff package deal before the July 8 deadline. Predictive of ongoing talks, Greer also engaged with Trade Minister Cheong In-kyo on Thursday to address unresolved trade matters and the state of US negotiations with other countries. Additionally, the third straight month of declining import prices has fueled expectations of further monetary easing by the Bank of Korea. This sentiment reflects the BOK's recent minutes, where a majority of board members highlighted increasing economic challenges and the necessity for additional rate cuts. In the broader economic context, US economic data suggests the Federal Reserve might lower rates twice within the year, leading to a potentially similar monetary policy stance in South Korea.