FX.co ★ South Korean Won Weakens on Dollar Rebound

On Tuesday, the South Korean won depreciated to approximately 1,424 against the US dollar, retreating from the over four-month highs achieved in the prior session. This shift was influenced by a resurgence of strength in the US dollar. The American currency's recovery followed President Trump's move to exempt crucial technology products from reciprocal tariffs. Additionally, reports emerged indicating a potential suspension of his proposed 25% tariffs on auto imports. Concurrently, in South Korea, the government unveiled substantial support measures to address rising concerns over US policy uncertainties and increasing global competition. The initiative includes KRW 33 trillion dedicated to the semiconductor sector from the 26 trillion won previously announced for 2024, along with financial assistance for chipmakers amounting to KRW 20 trillion, up from KRW 17 trillion. Finance Minister Choi Sang-mok highlighted that Seoul intends to 'actively engage in discussions with the US' regarding its Section 232 investigations into chip and biopharmaceutical imports to mitigate any adverse effects on South Korea's pivotal industries.