Trump-driven tariff uncertainty… won/dollar exchange rate 'rises' for first time in five sessions

The won/dollar exchange rate rose for the first time in five sessions after U.S. President Donald Trump abruptly mentioned raising tariffs on South Korea.

In the Seoul FX market on the 27th, the won traded at 1,451.3 per dollar as of 9:04 a.m., up 10.7 won from the previous day’s onshore close (3:30 p.m.). The rate opened at 1,450 won, up 9.4 won, and has been fluctuating in the low 1,450s.

The exchange rate had fallen for four consecutive sessions after President Lee Jae-myung said on the 21st that “within a month or two, the exchange rate will fall to around 1,400 won.” It then turned higher on the 27th, rising for the first time in five sessions.

The move is seen as reflecting a renewed increase in risk-off sentiment as uncertainty over Trump’s tariffs resurfaced. In a post on his social media platform Truth Social earlier in the day (Korea time), Trump said, “Korea’s legislature is not honoring the agreement between Korea and the United States,” adding, “Accordingly, we will raise all reciprocal tariffs on automobiles, timber, pharmaceuticals and everything else from 15% to 25%.”

In the stock market, foreign investors were net sellers early in the session. The dollar index, which measures the greenback against a basket of six major currencies, rose 0.02% to 97.036.

The yen, which had been extremely strong amid vigilance over possible intervention by U.S. and Japanese authorities, edged slightly weaker on the day. The dollar/yen rate, which had climbed to near ¥160 last week, fell to the ¥153 level the previous day before ticking up slightly on the 27th, trading in the low ¥154s. The won/yen cross rate stood at 940.41 won per 100 yen, up 6.26 won from the previous day’s 3:30 p.m. reference.

Park Subin, Hankyung.com reporter waterbean@hankyung.com