FX.co ★ South Korean Won Nears 5-Month Low

The South Korean won depreciated to approximately 1,419 per dollar on Wednesday, marking its fifth consecutive session of losses and nearing its lowest point since May 2025. This decline was fueled by the strengthening of the US dollar. The ongoing political uncertainty regarding the extended US government shutdown increased the dollar's appeal as a safe-haven currency, with investors drawn by the lack of timely data and ambiguous fiscal conditions. On the domestic front, South Korea cautioned that the European Union's plan to reduce tariff-free steel import quotas and impose a 50% duty on shipments exceeding quotas could severely impact its steel exports, which represent the country's second-largest overseas market. Meanwhile, the revival of US-China trade tensions further contributed to the cautious sentiment. This stemmed from Washington's recent introduction of new port fees on vessels connected to China and its indication of potential restrictions on chip-equipment exports, thereby heightening concerns about Asia's trade prospects.