The won-dollar exchange rate fell by more than 10 won, dropping to the 1,360 won range. Despite the postponement of the Korea-U.S. '2+2 Trade Negotiation', the preference for risk assets strengthened as tariff negotiations progressed between the U.S. and various global countries.
According to the Seoul foreign exchange market on the 24th, the closing price of the won-dollar exchange rate for weekly trading (as of 3:30 p.m.) was 1,367.2 won, a decrease of 12.6 won from the previous day. This is the lowest level in about three weeks since the 4th (1,362.3 won).
The exchange rate started at 1,373.7 won, down 6.1 won from the previous day. At one point during the day, it fell to 1,365.1 won. However, it rebounded just before closing, rising back to the 1,367 won range.
As trade negotiations between the U.S. and global countries progressed, the strong dollar trend somewhat eased. According to reports from foreign media on the 23rd (local time), the U.S. and the European Union (EU) are in agreement to impose a 15% tariff on EU imports.
On the 22nd (local time), the trade negotiations between the U.S. and Japan were completed. The tariff rate was reduced from the initial 25% to about 15%. The U.S. has also finalized tariff rates for the United Kingdom (10%), Vietnam (20%), and the Philippines (19%). A high-level trade meeting with China is also scheduled for the end of this month.
As global trade uncertainties eased, the value of the dollar fell. According to Investing.com, the dollar index (DXY), which indicates the relative value of the dollar against six major currencies, dropped from the upper 97 range the previous day to the lower 97 range.
In contrast, the won showed a strong trend. The second quarter GDP announced on the same day recorded 0.6%, exceeding the Bank of Korea's forecast (0.5%), supporting the strength of the won. The yen, which has a high correlation with the won, also showed strength, contributing to this trend. The dollar-yen exchange rate decreased from just over 147 yen the previous day to just over 146 yen.
In the domestic stock market, foreign investors continued their buying momentum, supporting the value of the won. On the same day, the KOSPI rose by 0.21% to close at 3,190.45. Foreign and institutional investors bought 806.2 billion won and 141.7 billion won, respectively.
However, the delay in trade negotiations between Korea and the U.S. limited the extent of the exchange rate decrease. According to the Ministry of Economy and Finance on the same day, the '2+2 Trade Consultation' between the finance and trade heads of Korea and the U.S., scheduled to be held in Washington, D.C., on the 25th, was abruptly canceled due to the urgent schedule of U.S. Treasury Secretary Scott Bessent.