The won-dollar exchange rate has fallen to the 1430 won level for the first time in a month. The dollar has sharply declined due to increasing expectations that President Donald Trump will pursue a more lenient tariff policy.
According to the Seoul foreign exchange market on the 21st, the weekly closing price of the won-dollar exchange rate (as of 3:30 p.m.) recorded a drop of 12.2 won to 1439.5 won compared to the previous trading day (1451.7 won). This marks the first time the closing price has been in the 1430 won range since Dec. 18 of last year (1435.5 won).
The exchange rate opened at 1437 won, down 14.7 won from the previous trading day's closing price. It briefly fell to 1432.9 won immediately after opening, but soared to 1443.9 won around 9:57 a.m. after President Trump mentioned the possibility of imposing tariffs on Mexico and Canada. However, it reversed and closed in the mid to high 1430 won range.
The decline in the exchange rate is attributed to the alleviation of concerns in the market that President Trump would impose universal tariffs on imported goods on his first day in office. Foreign media such as The Wall Street Journal reported that Trump decided to put additional tariffs on hold, contributing to the dollar's weakening.
According to Investing.com, as of 4:49 p.m. on the same day, the dollar index, which indicates the dollar's value against six major currencies, recorded 108.47. Considering it surpassed 110 on the 13th, marking the highest level since October 2022, this represents a slight decrease.
The Asian currencies that have been depreciating are now showing strength. The dollar-yen exchange rate is in the 155 yen range, and the dollar-yuan exchange rate is around 7.31 yuan. A week ago, on the 14th, they recorded 158 yen and 7.33 yuan, respectively.
Min Kyung-won, a researcher at Woori Bank, noted, "Contrary to market concerns, the possibility of Trump's aggressive tariff imposition has weakened, leading to the dollar showing weakness," and added, "The exchange rate is expected to be under downward pressure following the dollar's weakness."