FX.co ★ South Korean Won Slips

The South Korean won depreciated to approximately 1,385 against the dollar on Tuesday, ending a two-day upward trend and retreating from a six-month high achieved in the previous session. This recent uptick in the won was largely driven by speculation that the strengthening of Asian currencies was part of a broader effort to facilitate smoother trade negotiations with the United States. In the latest turn of events, the Trump administration signaled that it is nearing the conclusion of trade agreements with key partners. Given South Korea's significance as a major trading partner—particularly in sectors such as automobiles, ships, semiconductors, and electronics—officials from South Korea's Ministry of Industry traveled to Washington for discussions with representatives from the US Trade Representative's office. Their goal was to advance towards a potential resolution regarding US tariffs. Nonetheless, South Korean representatives have clarified that while preliminary groundwork is being laid, formal negotiations have not yet commenced and will likely proceed following the presidential election on June 3.