The won-dollar exchange rate has risen back to the 1,380 won level for the first time in over 20 days. This is due to the strong dollar resulting from U.S. President Donald Trump's tariff pressures.
According to the Seoul Foreign Exchange Market on the 14th, the exchange rate closed at 1,381.2 won, up 5.8 won compared to the previous day. The rate started at 1,378.0 won, up 2.6 won from the previous day, and increased further in the afternoon, surpassing 1,380 won. This marks the first time since the 23rd of last month (1,384.3 won) that the exchange rate has recorded a closing value of 1,380 won.
Trade tensions have increased as President Trump mentioned tariffs on major countries. On the 12th (local time), President Trump announced that he would impose a higher tariff of 30% on the European Union (EU), up from the existing 20%, and also apply 30% on Mexico.
The value of the dollar is on the rise. According to Investing.com, as of 4:13 p.m. on that day, the Dollar Index (DXY), which indicates the relative value of the dollar against six major currencies, recorded 97.99. This reflects a strong performance compared to the 96 level at the beginning of the month. The six currencies include the euro, Japanese yen, British pound, and Canadian dollar.
Wi Jae-hyun, an economist at NH Futures, noted, "The dollar is steadily increasing its floor and rebounding in response to the consecutive sending of tariff letters," adding that "the rebound of the dollar and the outflow of foreign funds due to risk aversion are expected to lead to an increase in the exchange rate." He also mentioned, "The potential for U.S. sanctions on oil against Russia is likely to fuel rising oil prices and will be digested as a factor for the dollar's rebound."