Donald Trump, the president of the United States, reaffirmed the 'tariff imposition,' and external variables such as the shock from China's 'Deep Seek' simultaneously acted, causing the won-dollar exchange rate, which resumed transactions a week after the Lunar New Year holiday, to surpass 1,450 won.
On the 31st, at the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,452.7 won, an increase of 21.4 won compared to the previous trading day (the 24th). This closing price is the highest since it recorded 1,458.3 won on the 17th.
On that day, the exchange rate started off with a surge of about 15 won compared to the previous trading day, reflecting external variables all at once during the long holiday. Firstly, the U.S. Federal Reserve (Fed) triggered a strong dollar by deciding on a 'hawkish freeze' through the Federal Open Market Committee (FOMC) on the 29th (local time).
Additionally, overnight, Donald Trump confirmed once again that he would impose a 25% tariff on Mexico and Canada starting from the 1st of next month, reinforcing the trend of dollar strength. Consequently, the dollar index, which indicates the value of the dollar against the currencies of six major countries, dropped to the 106 range earlier this week before rising to the 108 range.
The shock from the Chinese artificial intelligence (AI) startup 'Deep Seek' also contributed to this. Concerns over excessive investment in AI by major big tech corporations due to the announcement of low-cost, high-performance AI models dampened risk appetite, leading foreign investors to exit the Korean stock market and exacerbating the weakness of the won.