The South Korean won declined to approximately 1,376 per dollar on Friday, ending a five-day upward trend. This drop comes amidst increased strain on Seoul following Japan's recent trade agreement with the United States. Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo have been in Washington, where one official noted that the ongoing discussions have reached a “critical final phase.”
On the economic front, South Korea reported a 2.2% year-on-year decline in exports during the first 20 days of July, attributed mainly to diminished demand from the U.S. and China due to tariff-related uncertainties. Imports also decreased by 4.3%, a reversal from the 3.3% growth observed in June. Meanwhile, producer prices increased by 0.5% in June, up from a three-year low of 0.3% recorded in May.
Adding more pressure on the won, the U.S. dollar index remained steady at approximately 97.6, buoyed by a continuous decline in jobless claims for the sixth week in a row. President Trump visited the Federal Reserve on Thursday, just ahead of next week's policy meeting, during which the central bank is anticipated to maintain interest rates due to inflation concerns arising from trade-related risks.
