SEOUL, October 23 (AJP) - The South Korean won slid past 1,440 per U.S. dollar on Thursday, its weakest level in six months, as investors reacted to a mix of global and regional pressures — from U.S. policy uncertainty to shifting dynamics in Japan and China.
The won was traded at 1,440.3 per dollar, down 10.45 won from the previous session as of 1:00 p.m., marking its lowest point since April 29. The currency opened at 1,431.8 won.
Speaking at a press conference after the Bank of Korea held its key interest rate steady at 2.5 percent, Governor Rhee Chang-yong said that only about a quarter of the won’s recent depreciation could be attributed to the dollar’s global strength.
The rest, he noted, stemmed from regional and policy factors, including delayed U.S.-Korea tariff negotiations, Japan’s anticipated fiscal expansion under newly elected Prime Minister Sanae Takaichi, and renewed U.S.-China trade tensions.
Rhee cited uncertainty surrounding the U.S.-Korea tariff talks as a particular source of market pressure.
“The dollar index shows that negotiation delays are weighing on the won's value,” Rhee said. “A reduction in U.S. tariffs on Korean goods — from the current 25 percent to around 15 percent — would likely ease pressure on the won.”
Rhee also pointed to lingering concerns over a $350 billion U.S. investment funding package, saying its details would help clarify its influence on global capital flows. “We are monitoring closely and working to reduce volatility in the foreign exchange market,” he said.
Meanwhile, the Japanese yen continued to weaken, trading at 152.45 per dollar, as markets braced for potential fiscal expansion and the Bank of Japan’s continued reluctance to raise rates following Takaichi’s election as the prime minister.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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