On the 23rd, the won-dollar exchange rate rose by more than 8 won, reaching the high 1420s. This was due to the expectation of easing U.S.-China trade tensions that led to a surge in the value of the dollar.
On that day, the won-dollar exchange rate in the Seoul foreign exchange market started at 1429.2 won, which was an increase of 8.6 won from the closing price of the previous transaction day (based on 3:30 p.m.). Based on the opening exchange rate, this is the highest since the 11th (1454.0 won).
The rise in the exchange rate was attributed to the U.S. government stating that progress had been made in negotiations with China overnight. President Donald Trump said regarding the trade negotiations with China, "We are doing well," adding that it will "proceed very quickly."
Scott Bessent, U.S. Treasury Minister, also forecasted a reduction in tariff conflicts with China during a private investor meeting hosted by JPMorgan Chase. He was reported to have said that tensions are expected to ease in the "very near future."
Due to the impact of comments from President Trump and Minister Bessent, the dollar index, which indicates the value of the dollar against six major currencies, surged. According to Investing.com, the dollar index was recorded at 99.32 as of 9:44 a.m., up 0.35 from the previous day. The dollar index fluctuated between the 97 and 98 levels from the 21st until the previous day before rebounding.
Whee Jae-hyun, an economist at NH Futures, stated, "Today, the exchange rate is expected to rise to the mid-1430s following the rebound of the dollar," adding that "while there is a possibility of foreign investors flowing into the domestic stock market due to eased risk preference, the demand for currency exchange for domestic investors' overseas investments is expected to favor dollar buying."