FX.co ★ South Korean Won Slips for Second Session

The South Korean won depreciated to approximately 1,370 per dollar on Wednesday, marking its second consecutive session of declines as the US dollar gained strength amid expectations of sustained high interest rates in the United States. Domestically, South Korea reported a trade deficit of $1.7 billion, with imports surging by 11.5% to $17.18 billion during the period from June 1st to 10th. Meanwhile, exports increased by 5.4% to $15.47 billion for the same period, highlighting ongoing external challenges for the economy due to the widening trade gap. Further compounding the uncertainty, the National Pension Service (NPS) has recently concluded a five-month strategy of selling US dollars in the foreign exchange market. The NPS had been reducing its dollar holdings to mitigate currency volatility and to rebalance its portfolio, following the won dipping below its internal benchmark rate of 1,450 per dollar.