22.04.202502:51:18UTC+00South Korean Won Slips Ahead of US Trade Talks

On Tuesday, the South Korean won dipped to approximately 1,425 against the dollar as anticipation built around the forthcoming trade discussions between South Korea and the United States. Although there were indications of potential advancements, heightened trade tensions between the U.S. and China adversely affected the won, heavily reliant on exports. This development follows China's assertion to retaliate against any nations aligning with the U.S. to the detriment of Beijing. In an effort to address these issues, Finance Minister Choi Sang-mok has left for Washington, with Industry Minister Ahn Duk-geun set to depart on Wednesday. These talks, scheduled for April 24, were requested by the U.S., aiming to mitigate the 25% reciprocal tariff initially imposed by President Trump, which is currently on a 90-day suspension. Concurrently, South Korea's producer inflation rate declined to a four-month low of 1.3% in March, down from 1.5% in February, bolstering expectations of additional monetary easing by the Bank of Korea. Further compounding the situation, projections indicate that South Korea's economy likely grew by only 0.1% in the first quarter of 2025, casting doubt on the currency's strength ahead of the preliminary GDP figures anticipated on Thursday.