FX.co ★ South Korean Won Falls Amid Tariff Concerns and Firm Dollar

The South Korean won depreciated to approximately 1,394 against the US dollar on Wednesday, continuing its decline from the prior session. This drop occurred as investors grew wary in response to trade and monetary policy signals. During a meeting with members of the US Congress in New York on Tuesday, President Lee Jae Myung expressed concerns that ongoing tariff discussions with Washington were causing disturbances in the foreign exchange market. He highlighted that this uncertainty was creating apprehension regarding Korea's trade prospects and the potential impact on reserves. His comments coincided with a dip in consumer sentiment in September, marking the first decline in six months and highlighting the economic risks posed by sustained instability. Globally, the US dollar gathered strength, buoyed by Federal Reserve Chair Jerome Powell's reaffirmation that any future US interest rate cuts would be gradual and data-driven, dampening expectations for aggressive easing. Looking ahead, markets are focused on Friday’s release of US PCE inflation data for further Fed policy insights, as well as Thursday’s report on South Korean business confidence.