FX.co ★ South Korean Won Slips on Dollar Strength

On Wednesday, the South Korean won depreciated to approximately 1,388 against the US dollar, declining from its previous session's steadiness. This shift occurred as the dollar remained robust, driven by a risk-averse sentiment prevailing in Asian markets. Domestically, unresolved elements within the latest trade agreement continue to present potential challenges as South Korea and the US gear up for a summit between President Donald Trump and President Lee Jae-myung. In response, the Finance Ministry has initiated a task force as of Tuesday, aimed at developing strategies to support companies with managing tariffs and diversifying their export markets. The government plans to stimulate short-term demand while simultaneously investing in medium to long-term technological advancements to boost competitiveness. Moreover, South Korea, being the fourth-largest importer of thermal coal globally, increased its imports to 7.49 million metric tons in July, up from 5.49 million in June—the highest monthly volume since last August.