FX.co ★ South Korean Won Stalls Amid Firm Dollar

The South Korean won lingered around 1,376 per dollar on Monday, with pressure mounting as investors opted for the US dollar amid rising global trade tensions and a cautious market outlook. The Global Economic & Markets Research team at CBA cautioned that further retaliatory tariffs could destabilize global financial markets and economic equilibrium. Given its dependency on exports, the KRW is especially susceptible, with US tariff threats casting doubts over South Korea’s trade prospects. Investors' preference for risk-off positioning continues to advantage the US dollar, as safe-haven assets become more appealing. Domestically, President Lee Jae Myung has completed his Cabinet appointments, incorporating a blend of IT industry executives and members of the ruling party. The reshuffle, which includes experts from AI, cloud computing, and travel technology sectors, reflects a technocratic and performance-driven approach. Although these appointments are not anticipated to directly influence the market, they may help stabilize sentiment and attract some capital inflows. Nevertheless, external uncertainties remain a significant hindrance to the strength of the KRW.