FX.co ★ South Korean Won Steady

The South Korean won stabilized at approximately 1,397 per dollar on Monday, attributed to the weakening of the US dollar after an unforeseen downgrade of the United States' credit rating. On Friday, Moody's announced a reduction in the US rating from Aaa to Aa1, primarily due to a growing budget deficit and increasing interest costs. Meanwhile, investors are keenly observing the developments in the ongoing trade discussions between the United States and South Korea, particularly after the recent prompt trade agreement between the US and China. South Korea’s Trade Minister, Ahn Duk-geun, warned on Friday that the timeline for reaching a tariff agreement with the US, set for a July deadline, may be postponed owing to persistent domestic political challenges. Nevertheless, he mentioned that technical consultations between the two sides are scheduled for this week to promote progress in the negotiations, with an additional ministerial meeting anticipated in June.