On the 7th, the won-dollar exchange rate closed higher ahead of the end of the reciprocal tariff suspension by the United States.
On this day, the won-dollar exchange rate in the Seoul foreign exchange market finished at 1,367.8 won, up 5.5 won from the closing price of the previous trading day (as of 3:30 p.m.).
The exchange rate started at 1,362.7 won and fell to 1,361.7 won in the early trading session, but then switched to an uptrend, reaching 1,370 won during the trading.
This is interpreted as the influence of a cautious sentiment ahead of the end of the reciprocal tariff suspension by the United States. Former President Donald Trump noted on the night of the 6th (local time) through his social media account that he would sequentially send letters containing the reciprocal tariff rates to major trading partners starting from 1 a.m. on the 8th, Korean time.
Earlier, U.S. Treasury Secretary Scott Bessent also warned that countries where negotiations have not progressed will revert to the tariff levels announced on April 2 starting next month.
The net sale of domestic stocks by foreign investors also fueled the rise in the exchange rate. On this day, foreign investors net sold stocks worth 89.1 billion won in the securities market. Despite individuals net buying 152.6 billion won, the ongoing selling by foreigners led the KOSPI to close at 3,059.47, up 5.19 points (0.17%) from the previous session.
Wi Jae-hyun, an economist at NH Futures, forecasted, "This week, the foreign exchange market will see heightened uncertainty ahead of the U.S. tariff notification, and with mixed factors including a weaker dollar due to tariff concerns and an expanded dollar position due to market expectations, it will likely consolidate around 1,360 won."
Min Kyung-won, a researcher at Woori Bank, also stated, "The won-dollar exchange rate is expected to rise due to the dampening of risk preference sentiment stemming from heightened uncertainty in trade negotiations," adding that, "The domestic market seems likely to see a shift to net selling by foreign funds, which will serve as material stimulating the long dollar sentiment in and out of the region."