Ahead of the tariff negotiations between Korea and the United States, the won-dollar exchange rate surged significantly.
On the 29th, the won-dollar exchange rate weekly transaction closing price (as of 3:30 p.m.) in the Seoul foreign exchange market rose by 9.0 won from the previous trading day, recording 1391.0 won. The exchange rate started at 1390.0 won, up by 8.0 won, and soared to 1394.6 won around 9:10 a.m., before reducing its gains and moving sideways.
The market sees this as reflecting caution regarding the reciprocal tariff negotiations between Korea and the United States. Deputy Prime Minister and Minister of Economy and Finance Ku Yun-cheol and Minister of Foreign Affairs Park Jin are scheduled to meet with U.S. Treasury Secretary Scott Bessent and Secretary of State Marco Rubio in the U.S. on the 31st for final negotiations.
Minister of Trade, Industry and Energy Kim Jung-kwan and Yeo Han-koo, head of the trade negotiation office, will also move to the U.S. following Scotland in the United Kingdom to continue negotiations with U.S. Secretary of Commerce Howard Lutnick. Minister Kim reportedly initiated the Korea-U.S. industrial minister negotiations at Secretary Lutnick's residence on the 25th and proposed a "shipbuilding industry cooperation project."
With the tariff negotiation deadline approaching on the 1st of next month, the dollar is gaining strength. The Dollar Index (DXY), which represents the dollar's value against six major currencies, recorded a rise of 0.19% to 98.828 compared to the previous day. After maintaining the 97 level since the 22nd, it rebounded above the 98 level the previous day and continued its upward trend.
At the same time, the won-yen exchange rate is 938.25 won per 100 yen. This is an increase of 5.41 won compared to the reference price at 3:30 p.m. yesterday. The dollar-yen exchange rate recorded 148.38 yen, down by 0.07 yen.
Wi Jae-hyun, an economist at NH Futures, noted, "The unrealistic commitment amounts for investments in the U.S. from Japan (550 billion dollars) and the European Union (600 billion dollars) are driving the dollar's strength," adding, "As we plan to leverage investments in the U.S. from the countries still in negotiation, the long position on the dollar is likely to continue for a while."