FX.co ★ South Korean Won Weakens as US Tariff Impact Weighs on Outlook

The South Korean won weakened beyond 1,380 per dollar on Thursday, reaching its lowest point in almost a month. This decline was primarily driven by escalating concerns over the economic repercussions of U.S. tariffs on certain Korean exports. The Bank of Korea has noted that these trade barriers could put downward pressure on domestic prices and demand, heightening the expectations for further policy easing. This cautious approach contributes to the won's vulnerability, especially in a stronger dollar climate. While discussions with Washington about tariff relief are ongoing and may conclude by early July, investor confidence remains fragile. Despite ongoing government stimulus and corporate reform initiatives offering some support, foreign capital inflows have been inconsistent, leaving the won exposed to external risks and varying global monetary policies.