The won-dollar exchange rate surged to the 1,470 won level in early trading. This was influenced by U.S. President Donald Trump's initiation of tariff imposition procedures against Canada, Mexico, and China, strengthening global demand for the dollar.
According to the Seoul Foreign Exchange Market on the 3rd, the exchange rate was trading at 1,471.30 won as of 10:07 a.m. This is an increase of 18.6 won from the previous trading day's closing rate of 1,452.7 won.
The exchange rate opened at 1,466.0 won, 13.3 won higher than the previous trading day's closing price. It increased by 12.5 won from the closing price of 1,453.5 won on the 1st at 2 a.m. The exchange rate breached 1,470 won shortly after opening and is threatening to reach 1,472 won.
The dollar appears to have strengthened as the tariffs announced by President Trump have come into effect. On the 1st (local time), President Trump signed an executive order imposing tariffs on Canada, Mexico, and China under the International Emergency Economic Powers Act (IEEPA).
According to Investing.com, the dollar index (DXY), which shows the dollar's value against six major currencies, recorded 109.65 as of 10:14 a.m. This is a sharp rise compared to last week, when it was fluctuating in the low 108 range. In contrast, Asian currencies are weak. The dollar-yuan exchange rate is at 7.35 yuan, and the dollar-yen exchange rate is also in the 155 yen range.
Experts expect the exchange rate to move within the 1,470 won range. Min Kyung-won of the Woori Bank Research Institute noted, "Today, the exchange rate is expected to rise due to the re-emergence of concerns over the global trade war," adding, "Given the significant drop in the New York stock market during the weekend due to tariff imposition concerns, it is anticipated that the domestic market will experience substantial selling pressure from foreign investors today."