FX.co ★ South Korean Won Gains on Upbeat Data

The South Korean won appreciated to approximately 1,367 per dollar on Tuesday, recovering from the prior session influenced by positive economic indicators. The Composite Consumer Sentiment Index surged to 101.8 in May 2025, up from 93.8 the month prior, reaching its highest level since October 2024. This significant boost in sentiment stemmed from diminishing political uncertainties and heightened optimism about a possible tariff agreement with the United States. In a recent trade update, the US has urged South Korea to address the trade imbalance between the two nations. These discussions, initiated in April, come as South Korea seeks exclusions from the hefty tariffs suggested by the Trump administration. Meanwhile, investor focus is directed towards the Bank of Korea’s monetary policy decision scheduled for Thursday, with a 25 basis point rate reduction largely anticipated by the market. On the international front, the South Korean won found additional support from a weakening US dollar, driven by concerns over America's fiscal outlook and evolving trade policies.