FX.co ★ SK Won Weakens, US-South Korea Tariff Talks Eyed

The South Korean won depreciated to approximately 1,393 per dollar on Tuesday, undoing previous session gains as investors remain cautious, anticipating the progress of US–South Korea tariff discussions. A South Korean delegation is set to visit Washington on May 20 for a second round of technical negotiations. Both parties are focused on finalizing a comprehensive deal by early July. In April, the US implemented reciprocal tariffs on various trading partners, including a 25% tariff on South Korean products; however, these measures were paused for 90 days to facilitate bilateral discussions. Previous discussions occurred in Washington and on Jeju Island in South Korea, where Seoul advocated for complete tariff exemptions. Meanwhile, investors are attentively observing the Bank of Korea's forthcoming policy decision next week, following a 25 basis point rate cut in February designed to support the won in light of pending US tariff measures.