The won-dollar exchange rate fell sharply due to the possibility of changes in tariff policies under the second administration of Donald Trump in the United States.
On the 7th, in the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,453.5 won, down 16.2 won from the previous trading day as of 3:30 PM.
On that day, the won-dollar exchange rate opened at 1,460.3 won, down 9.4 won from the previous trading day, and during the session, it even fell to the high 1,440 won range.
The dollar weakened following a report by The Washington Post (WP) the previous day that President-elect Trump's staff was reviewing a universal tariff plan that would include only key imports critical to the United States' national and economic security.
Interpretations arose that the WP report indicated a retreat from the Trump second administration's previous stance of imposing tariffs of 10-20% on all imports, causing the dollar index to fall sharply.
However, after the report, President-elect Trump rebutted by calling the WP report "fake news," which reduced the extent of the dollar's weakness.
Min Kyung-won, an economist at Woori Bank, evaluated, "The report that President-elect Trump might impose universal tariffs only on key items caused the dollar to fall sharply. However, after President-elect Trump denied this, the dollar's decline narrowed."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
