On the 8th, the won-dollar exchange rate started at 1,470 won. This was influenced by a heightened risk-averse sentiment following President Trump's announcement to raise mutual tariffs against China in response to China's retaliatory tariffs.
On this day, the won-dollar exchange rate in the Seoul foreign exchange market opened at 1,471 won, up 3.2 won from the previous transaction closing price (as of 3:30 p.m.). It is the first time the exchange rate has exceeded 1,470 won since the 3rd (1,471.0 won) in three transactions.
The surge in the exchange rate is due to the expansion of the tariff war originating from the United States. Donald Trump, the President of the United States, warned on the 7th (local time) in a post on his social networking service (SNS) Truth Social that if China does not withdraw the 34% tariffs by the 8th, the U.S. will impose an additional 50% tariff on China, igniting risk-averse sentiment.
According to Investing.com, the Dollar Index (DXY), which shows the value of the dollar against the currencies of six major countries, recorded 103.36 as of 9:10 a.m. It has risen by 2 points in four transactions compared to the 3rd, when it had dropped to the early 101 range. In contrast, major Asian currencies are weak, with the dollar-yen exchange rate at around 148 yen and the dollar-yuan exchange rate at around 7.34 yuan.
Min Kyung-won, a researcher at the Woori Bank Research Institute, noted that today's won-dollar exchange rate is expected to show mid-1,470 won levels due to the strong dollar stemming from Trump's tariff war and foreign net selling in the stock market. He added that concerns about the expansion of the tariff war intensified after Trump announced he would again raise tariffs against China in response to China's retaliatory tariffs.
The researcher stated, however, that high selling by export companies and the authorities' caution in finely adjusting policies are limiting the upper range of the exchange rate. He expressed hope that as the exchange rate exceeds the 1,460 won level and domestic political uncertainties ease, export companies that had been withholding dollar sales would gradually begin to respond with sales.