FX.co ★ South Korean Won Snaps 2-Day Gain

The South Korean won weakened to approximately 1,375 against the US dollar, braking a two-day stretch of gains, as market sentiment grew cautious over rekindled tariff concerns. Recently, a US federal appeals court temporarily reinstated President Trump's extensive tariffs, reversing a lower court decision that had nullified them just a day prior. In terms of monetary policy, economic worries intensified when the Bank of Korea reduced its benchmark interest rate to 2.50% and lowered its 2025 GDP growth forecast to a modest 0.8%, indicating a deceleration in economic growth. Political uncertainty also exerted pressure, with investors attentively monitoring the upcoming presidential elections slated for June 3. Meanwhile, there is a growing anticipation that South Korea's trade surplus with the US might diminish, as local companies continue to increase investments in the US. Investors now turn their attention to the upcoming release of South Korean economic data, which includes trade balance, PMI, and inflation figures scheduled for next week.