Won-dollar exchange rate briefly exceeded 1,430 won on Trump's tariff threat against China

Entered the 1,430-won range for the first time since last May

New York stock market plunged across the board… Nasdaq fell in the 2% range

The won-dollar exchange rate surged in after-hours trading and briefly topped 1,430 won.

U.S. President Donald Trump raised the intensity of his attacks on China and warned of a 'massive tariff increase,' which had an impact.

As of 2 a.m. on the 11th (Korean time), the dollar-won exchange rate closed at 1,427.00 won, up 27.00 won from the Seoul foreign exchange market's closing price on the 2nd.

It was also 6.00 won higher than this week's trading (9:00 a.m. to 3:30 p.m.) closing price of 1,421.00 won.

The won-dollar rate was hovering around the 1,420-won level after the market close, but surged when President Trump's remarks were reported during the New York morning session.

In a post on his social media 'Truth Social,' President Trump criticized China's control over rare earth exports and said, "I was scheduled to meet Chinese President Xi Jinping at the APEC (Asia-Pacific Economic Cooperation) meeting in Korea in two weeks, but now there seems to be no reason to do so."

He added, "One of the policies currently under review is a massive tariff increase on Chinese-made products entering the United States," and warned, "We are also seriously considering a number of other countermeasures."

After the remarks were reported, the three major U.S. stock indices plunged across the board. The tech-heavy Nasdaq index recorded a decline in the mid-to-high 2% range.

Robert Pavlik, DakotaWells' chief portfolio manager, said, "President Trump has once again caught the market off guard, and uncertainty is increasing as a result."

The won-dollar exchange rate rose to as high as 1,432.00 won in the late New York morning session before retracing some of the gains. Including after-hours trading, it exceeded 1,430 won for the first time since May 2.

At the same time (as of 2:19 a.m.), the dollar-yen rate was 151.750 yen, and the euro-dollar rate was 1.16010 dollars. The offshore dollar-yuan rate was 7.1401 yuan.

The yen-won recalculated rate was 936.39 won per 100 yen, and the yuan-won rate was 199.21 won.

The intraday high of the dollar-won rate that day was 1,432.00 won, the low was 1,418.40 won, marking a fluctuation range of 13.60 won.

Including after-hours trading, total spot foreign exchange transaction volume, combining Seoul Money Brokerage and Korea Money Brokerage, was totaled at 16,974,000,000 dollars.

Yoo Ji-hee, Hankyung.com reporter keephee@hankyung.com