The won-dollar exchange rate against the U.S. dollar closed the week at 1,382.4 won at 3:30 p.m. on the 24th. That was down 4.1 won from the prior trading day's weekly closing price of 1,386.5 won.
According to the Seoul foreign exchange market that day, the rate fell to as low as 1,376.5 won at about 11:15 a.m. This was the lowest level in about 11 months since Sept. 17 last year (1,375.7 won).
It is seen as the result of domestic exporters selling U.S. dollars to make interim corporate tax prepayments, pushing the rate down. Interim corporate tax prepayment means paying next year's corporate tax in installments in advance this year, with the deadline at the end of this month. Korea Investment & Securities Co. estimates the size of interim corporate tax prepayments in August this year at more than 46 trillion won.
However, the United States and Canada are imposing retaliatory tariffs on each other, leaving room for the rate to rise later. If that happens, risk appetite tends to freeze and the value of the won, a non-reserve currency, tends to fall.
Earlier, on the 22nd (local time), the United States imposed a 50% tariff on about $20 billion worth of imports from Canada. Canada also said it would impose retaliatory tariffs of the same scale on U.S. steel, dairy products, home appliances, agricultural machinery and pulp starting Sept. 8. Canadian Prime Minister Mark Carney said in a national address the same day, "(We are) at war (with the United States)," adding, "We cannot accept what they have proposed, and we will not give what they have demanded."