The South Korean won weakened to approximately 1,390 against the US dollar on Thursday, marking its lowest point in nearly two months. This decline is attributed to the strengthening of the US dollar, spurred by rising yields on US Treasury securities. Furthermore, uncertainty persists regarding the Federal Reserve's independence following reports suggesting that President Trump considered dismissing Fed Chairman Jerome Powell. Although Trump later minimized this speculation, the incident highlighted investors' sensitivity to the credibility of central banks.
In terms of international trade, President Trump intends to send a uniform tariff notification to over 150 smaller nations, establishing a standard rate. Meanwhile, major global economies such as the European Union, Japan, and South Korea have already received separate notifications. South Korea is presently negotiating a framework deal with the United States, aiming to conclude it by August 1. This agreement seeks to prevent potential US tariffs on crucial South Korean exports, including automobiles, steel, and industrial machinery. Trade Minister Yeo Han-koo noted that discussions have achieved "considerable progress," especially in sectors like industrial cooperation and possible tariff exemptions.
