On the 21st, the won-dollar exchange rate opened at 1,480.4 won per U.S. dollar, up 2.3 won from the previous day. As the United States and Europe, clashing over Greenland, sharpened their stance by saying they would impose tariffs on each other, risk appetite weakened, weighing on risky assets. In the market, the won is classified as a risky asset.
According to local media, on the 20th (local time), Howard Lutnick, U.S. secretary of commerce, said at the World Economic Forum (WEF) in Davos, Switzerland, "(If Europe imposes retaliatory tariffs on the United States) we will return to a tit-for-tat phase."
Earlier, on the 17th, U.S. President Donald Trump said the United States would impose tariffs on eight European countries that oppose the United States annexing Greenland. With news that these countries are preparing retaliatory tariffs, Secretary Lutnick responded that the United States would hit back.
Min Kyung-won, a Woori Bank researcher, said, "The threat to raise tariffs on allies by President Trump has dampened preference for risky assets," but noted that "wariness toward (our foreign-exchange) authorities is a factor capping the upper end of the won-dollar rate."