On the 2nd, the won-dollar exchange rate fell to the low 1,370 won range. The phenomenon was attributed to the weakening of the dollar as the trade conflict between the U.S. and China intensified.
On this day, the closing price of the weekly transaction of the won against the U.S. dollar in the Seoul foreign exchange market (as of 3:30 p.m.) was 1,373.1 won, down 7.0 won from the previous transaction day. The exchange rate started at 1,383.5 won, up 3.4 won from the previous transaction day, but then turned downward, reaching 1,372.6 won just before the close.
The exchange rate showed a trend linked to the Dollar Index (DXY), which indicates the value of the dollar against the currencies of six countries. According to Investing.com, the Dollar Index, which was above the 99 line in the morning, sharply fell to the 98 line in the afternoon.
It seems the dollar's weakness was due to the intensifying U.S.-China trade conflict. U.S. President Donald Trump claimed in a post on Truth Social on the 31st of last month (local time) that "China has completely breached its agreement with us." It means that during the U.S.-China talks held earlier last month in Geneva, Switzerland, it was agreed to lower tariffs, but China did not adhere to this.
However, on the 1st, Scott Bessent, the U.S. Treasury Minister, noted in a broadcast interview that "if President Trump and Chinese President Xi Jinping communicate, it will be resolved," easing the tension somewhat.
At the same time, the won-yen financial exchange rate was transacted at 958.70 won per 100 yen, down 0.14 won from the previous transaction day's standard of 958.84 won as of 3:30 p.m. The yen-dollar exchange rate was 143.14 yen, down 0.92 yen.