FX.co ★ Korean Won Pulls Back on Dollar Strength

On Tuesday, the South Korean won declined toward 1,360 per dollar, retreating from its peak near eight-month highs. This shift followed a strengthening of the US dollar, prompted by indications of easing trade tensions between the United States and China. The improvement in US-China relations increased demand for the dollar, consequently weakening emerging market currencies like the won. Recent high-level discussions focused on reducing tariffs and enhancing strategic cooperation to reestablish trade flows and address disputes related to technology, intellectual property, and market access. Furthermore, President Lee Jae-myung and President Donald Trump have agreed to engage in direct discussions soon. Both leaders are committed to quickly achieving a mutually beneficial agreement on trade tariffs, and working-level negotiations are anticipated to commence before the scheduled summit.