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21.10.202503:20:19UTC+00South Korean Won Falls Amid Firm Dollar

On Tuesday, the South Korean won depreciated to approximately 1,423 per dollar, declining from its stable levels in the prior session. This movement occurred as investors evaluated the robust dollar amidst ongoing US–Korea trade discussions. The dollar found support as market participants looked for signs that the extended US government shutdown might soon conclude. Additionally, the tone in US–China relations improved ahead of scheduled high-level meetings later this month in South Korea. In parallel, a sense of optimism emerged after reports suggested that US officials had relaxed their requirement for Seoul to meet its entire $350 billion investment obligation upfront, indicating progress in trade and investment negotiations. While Seoul previously advocated for financial protections, such as a currency-swap arrangement, this topic has not featured in the latest discussions. Looking forward, investors are keenly anticipating the Bank of Korea’s policy decision on Thursday for insights into future interest rate trends and its evaluation of external pressures affecting the won.

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