Won-Dollar Exchange Rate Hits Highest Since Financial Crisis in 16 Years... Closes at 1473.2 Won (Update)

US Tariff Announcement vs. China's Retaliatory Tariffs
Growing Concerns Over Global Trade Disputes

The won-dollar exchange rate closed at 1,473.2 won on the 8th, marking the highest level since the 2009 financial crisis. Concerns over an escalation in the tariff war between the United States and China dominated the foreign exchange market.

On that day, the won-dollar exchange rate in the Seoul foreign exchange market's weekly trading (as of 3:30 PM) closed at 1,473.2 won, up 5.4 won from the previous day. This is the highest level in about 16 years since March 13, 2009, when it was 1,483.5 won based on the weekly closing price.

With the tense standoff continuing due to the U.S. imposing tariffs and China retaliating with counter tariffs, the won-dollar exchange rate, which surged 33.7 won in the previous trading day to reach 1,467.8 won in one leap, opened higher at 1,471.0 won and expanded its gains in the afternoon. Safe-haven asset preference deepened, marking a rise for two consecutive trading days.

China decided to retaliate with a 34% tariff on U.S. goods starting from the 10th, matching the 34% reciprocal tariffs imposed by the U.S. Overnight, U.S. President Donald Trump responded by stating that if China does not withdraw its retaliatory tariffs by the 8th, an additional 50% tariff will be imposed starting from the 9th. Although U.S. Treasury Secretary Scott Baesant left the door open for negotiations, he limited it to countries favorable to U.S. tariffs. On the morning of the same day, a spokesperson for China's Ministry of Commerce issued a statement saying, "We absolutely cannot accept this," and warned, "If the U.S. insists on its stance, China will definitely fight back to the end," signaling a counterattack.

The rise in the exchange rate was also analyzed to be influenced by the People's Bank of China's announcement of a yuan devaluation. The yuan devaluation announcement means a decline in the yuan's value against the dollar, and the won also fell in tandem.

The won-yen recalculated exchange rate was 998.68 won per 100 yen as of 3:30 PM. This is a drop of 9.53 won from 1,008.21 won at 3:30 PM the previous day, falling below 1,000 won.