FX.co ★ South Korean Won Rises on Eased Trade Uncertainty

On Tuesday, the South Korean won appreciated to approximately 1,368 per dollar, recovering from the losses experienced in the previous session. This recovery was driven by a reduction in investor uncertainty after the United States clarified its trade measures, thus providing a more definitive policy direction following weeks of ambiguity. On July 7, US President Donald Trump further detailed the scope of these measures in communications with Japan and South Korea, announcing a 25% tariff on both nations. Investor confidence was bolstered by the extension of the tariff implementation deadline, fostering hope that the additional time might facilitate productive trade discussions. The newly announced tariffs, which are scheduled to be enforced on August 1, will not overlap with existing sector-specific tariffs on products such as automobiles, steel, and aluminum. Market observers are now keenly awaiting Seoul's response and any subsequent modifications to trade or fiscal strategies.