The news of a trade agreement between the U.S. and China caused the won/dollar exchange rate to rise sharply.
According to the Seoul foreign exchange market on the 13th, the won exchange rate against the U.S. dollar opened at 1,415.0 won, up 12.6 won from the previous trading day's weekly transaction closing price (as of 3:30 p.m.).
The exchange rate closed at 1,402.4 won the previous day, but following the announcement of the U.S.-China trade agreement, it rose by more than 15 won within two hours. The rate continued to remain high, with the overnight trading closing price reaching 1,417.0 won at 2 a.m.
The U.S. and China conducted high-level trade negotiations in Geneva, Switzerland, the previous day and agreed to lower tariffs. The U.S. plans to reduce tariffs imposed on Chinese goods from 145% to 30%, while China will significantly adjust its retaliatory tariffs from 125% to 10%.
The two countries plan to implement this agreement by the 14th, and the lowered tariffs will be deferred for 90 days. During the deferral period, the two countries aim to reach a complete agreement through additional negotiations.
As a result of this decision, the value of the dollar has also bounced back. According to investment information firm Investing.com, the dollar index, which indicates the value of the dollar against the major six currencies, was recorded at 101.68 as of 9:13 a.m. This marks the highest level in over a month since the 10th of last month.
Wi Jae-hyun, an economist at NH Futures, noted, "Today, the won/dollar exchange rate is expected to attempt to rise to the 1,420 won level as it digests the possibility of further dollar strength; however, the potential for U.S. economic slowdown due to the already imposed tariff levels and market caution regarding additional negotiations over the next 90 days will limit further dollar strength."