The KRW-USD exchange rate falls to the 1,350 won range… Impact from concerns over a US economic slowdown

The KRW-USD exchange rate dropped to the 1,350 won range early in the trading session.

It's the first time in seven months, since October 15 of last year, that the intraday rate hit the 1,350s.

On the 5th at the Seoul foreign exchange market, the KRW-USD rate opened at 1,363.5 won, down 6.0 won from the previous trading day.

As of 9:36 AM, the continued decline had the rate trading at 1,359.8 won.

This decline is attributed to deteriorating economic indicators, as well as continuing difficulties in the US-China trade agreement talks.

Overnight, US President Donald Trump stated on his Truth Social account that negotiations with Chinese President Xi Jinping were tough.

Trump said, “I like President Xi of China, I always have, and I always will,” but added, “He's very tough and extremely difficult to negotiate with.”

Weaker numbers in both private sector employment and the service industry were additional negative factors.

According to the Automatic Data Processing, Inc. (ADP) employment report, private sector jobs in May increased by 37,000 from the previous month—this is the lowest number since March 2023 and far short of the market expectation of 115,000.

The Purchasing Managers' Index (PMI) for the service sector in May was 49.9 points, falling below 50 points and entering contraction for the first time since June 2024.

Kookmin Bank stated, “Among major US economic indicators this year, employment data is having the greatest market impact,” and added, “Ahead of the FOMC meeting on the 19th, market sensitivity to this week’s non-farm payroll data and next week’s consumer price results will be even greater.”

Reporter Lim Dongjin djlim@wowtv.co.kr