The won-dollar exchange rate against the U.S. dollar closed weekly trading at 1,386.1 won at 3:30 p.m. on the 25th. It was up 3.7 won from the previous day's weekly transaction closing price of 1,382.4 won.
It is seen as the result of worsening investor sentiment toward risk assets as the trade war between the United States and Canada has intensified. The more market participants shy away from risk assets, the more the value of the won, which is not a key currency, tends to fall.
U.S. President Donald Trump said on the 24th (local time) on his social media Truth Social that "starting Jan. 1, 2027, tariffs on cars, small and large trucks, auto parts, and steel will be raised to 50%." Just two days after saying he would impose a 50% tariff on $20 billion (about 2.77 trillion won) worth of Canadian goods, he also released additional auto tariffs.
On the same day, Canada Prime Minister Mark Carney said at a shipbuilding investment event at the Davie Shipyard in Lévis, Quebec, "We could not accept what the United States put forward, and we could not give them what they demanded." He added, "At the negotiating table, the (U.S.) attitude that Canada is a U.S. subsidiary or that Canada's industry will be disadvantaged compared with U.S. industry, and the attitude that Canada's industry will face headwinds over time, are things we can never accept."
That day, foreigners sold 3.8205 trillion won worth of stocks in the domestic KRX market, further fanning the rise in the exchange rate.
Min Kyung-won, a researcher at Woori Bank, said, "The decline in the New York stock market overnight, led by artificial intelligence (AI) chip stocks, also weighed on the domestic market," adding, "Net selling by foreigners added to the downward pressure on the won."