FX.co ★ SK Won Weakens on Dollar Strength, Geopolitical Risks

On Tuesday, the South Korean won weakened to approximately 1,388 against the US dollar, pulling back from the gains seen in the previous session. This shift was influenced by a stronger dollar after discussions at the White House between US and EU leaders, which primarily focused on addressing the ongoing conflict in Ukraine. Investor sentiment was negatively impacted by increased geopolitical tensions, following North Korean leader Kim Jong Un's commitment to enhance his country's nuclear capabilities and criticism of the joint US-South Korea military exercises, which have been upgraded this year in response to North Korean threats. Additionally, Bank of Korea Governor Rhee Chang-yong pointed out the ongoing uncertainty due to US trade negotiations, emphasizing that the board will consider both international risks and domestic economic conditions when setting policy at the meeting on August 28.