FX.co ★ SK Won Hovers at 10-Week Low After US Trade Deal

The South Korean won hovered around 1,390 per dollar on Thursday, marking over ten-week lows subsequent to the finalization of a trade agreement between Seoul and Washington. This deal enacts a 15% blanket tariff on South Korean exports to the United States, significantly lower than the 25% rate previously threatened by President Donald Trump earlier in the month. Furthermore, Trump announced South Korea's planned investment of $350 billion in the US, a move clarified by President Lee Jae-myung as targeting support for Korean companies expanding their operations in the American market. The ruling Democratic Party welcomed the agreement, highlighting the alleviation of tariff pressures. Conversely, the opposition People Power Party expressed concerns regarding the potential economic strain associated with South Korea's commitments. Meanwhile, the won remained pressured as the US dollar strengthened following the Federal Reserve's decision to maintain steady interest rates with minimal guidance on prospective rate cuts.