The won-dollar exchange rate has risen above 1450 won for the first time in two weeks. This is due to the strong dollar following U.S. President Donald Trump's announcement of tariffs on Canada and Mexico and the imposition of additional tariffs on China.
According to the Seoul foreign exchange market on the 28th, the won-dollar exchange rate opened at 1451 won, up 8 won from the previous trading day (1443 won), based on the weekly transaction close (3:30 p.m.). This is the first time the exchange rate has exceeded 1450 won since the 13th. As of 10:29 a.m., the exchange rate has further increased, reaching the 1457 won level.
The dollar strengthened as Trump announced tariffs on Mexico, Canada, and China. In a post on his social media on the 27th (local time), Trump mentioned the responsibility of China, Canada, and Mexico in the influx of fentanyl, a synthetic opioid into the U.S., and emphasized, "The tariffs, which are set to take effect on March 4, will be enforced until this issue is resolved or significantly limited," adding that a 10% additional tariff would be imposed on China on the same day.
Earlier, Trump signed an executive order on the first of the month imposing a 25% tariff on imports from Canada and Mexico and a 10% tariff on imports from China. Tariffs on China were imposed starting on the 4th, while those on Canada and Mexico were delayed for a month until April 2 but are now being expedited.
The dollar index, which shows the value of the dollar against the currencies of the major six countries, is on the rise due to the U.S. tariffs. According to Investing.com, the dollar index stood at 107.29 as of 10:34 a.m. today, reflecting a slight increase compared to the previous day, which hovered around 106.
Wi Jae-hyun, an economist at NH Futures, noted, "The current market sentiment driven by policy uncertainty is a bearish factor for the risk currency, the won," adding that the exchange rate could potentially rise to the mid-1450 won range during the trading session. However, he also stated, "The retracement movements due to sharp fluctuations in the dollar and the month-end negotiations by exporters will be bearish factors."
Min Kyung-won, a researcher at Woori Bank, said, "Trump is once again raising the pressure for tariff increases, and the New York stock market responded by adjusting positions amid trading uncertainty throughout the night," predicting that, "The domestic stock market will also play a leading role in creating a bearish atmosphere for the won as foreign capital continues to flow out."