Seoul: The South Korean currency experienced a slight decline against the U.S. dollar Thursday, following volatile trading sessions driven by concerns over the Donald Trump administration's comprehensive tariff plan.
According to Yonhap News Agency, the Korean won was recorded at 1,467.0 won as of 3:30 p.m., marking a decrease of 0.4 won from the previous trading session. The currency initially opened significantly lower at 1,471 won per dollar, reacting to Trump's announcement of stronger-than-expected tariffs on American imports. Despite fluctuations, the currency ended marginally below its previous session value.
Min Gyeong-sup, an expert at Next Securities, remarked on the situation, stating, "The tariff issue has already been reflected in the market. We cannot say the plan of imposing a 26 percent tariff, albeit high, is an unexpected, worst-case scenario." Trump's tariff strategy includes a 10 percent "baseline" tariff on imports from all foreign countries, with "reciprocal" tariffs such as the 26 percent duties specifically for South Korea. These baseline and reciprocal tariffs are scheduled to commence on Saturday and next Wednesday, respectively.
Min further suggested that there might be opportunities for negotiation with the U.S., while investors are also keenly watching the Constitutional Court's upcoming decision on President Yoon Suk Yeol's impeachment. This ruling, expected on Friday, could potentially reduce political uncertainties.
In recent times, the local currency has hovered around the 1,470 won level against the dollar, a threshold not seen since March 2009 during the aftermath of the global financial crisis.