FX.co ★ SK Won Slips on Stronger Dollar, Summit Uncertainty

The South Korean won weakened to approximately 1,386 per dollar on Monday, reflecting a similar trend among broader Asian currencies due to a strengthening dollar and increased uncertainty preceding the South Korea-US summit. This meeting is occurring within the context of the Trump administration's initiative to "modernize" the South Korea-US alliance. Such modernization could entail Seoul assuming greater defense expenses and potentially lead to a reassessment of the 28,500 US troops currently stationed in South Korea, as the United States intensifies efforts to curb China's growing influence. Additionally, market sentiment was further dampened by a notable decline in South Korea's steel exports to the United States, which decreased by 26% in July, totaling $283 million compared to $382 million in the same period last year. This figure represents the lowest level since March 2021, following the U.S. decision in June to double tariffs on all steel and aluminum imports to 50%.