On the 20th, the won-dollar exchange rate opened at 1,474.5 won per U.S. dollar, up 0.8 won from the previous day.
As U.S. President Donald Trump signaled a willingness to secure Greenland, the rate did not fall even though foreign media raised concerns about "Sell America" (selling U.S. asset).
On the 19th (local time), President Trump said in an interview with local media that he would "100% carry out (the plan to impose tariffs on some European countries if there is no deal to secure Greenland for the United States)." Recently, Trump said he would impose a 10% tariff starting Feb. 1 on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland for sending troops to Greenland. He also said the tariff would be raised to 25% starting June 1.
In response, the market questioned whether the U.S. move could undermine the dollar's hegemonic status at the center of the global economic order. Min Kyong-jin of Woori Bank said, "Considering that after President Trump released the reciprocal tariff policy in April last year, U.S. stocks plunged and Sell America (selling U.S. asset) emerged, fears of reigniting a trade war this time will also act as a factor weakening the dollar."
However, some note there are few alternatives to replace U.S. capital markets. Citing analysts, Reuters said the dollar's value against the euro has already fallen significantly since April last year, and other investment alternatives are lacking. Dutch financial group ING also said the European Union (EU) has few tools to force private investors to sell dollar assets, and can only try to encourage investment in euro assets.