South Korean Won Retreats on Trade Policy Jitters
On Thursday, the South Korean won weakened to approximately 1,392 against the dollar, reversing recent gains due to growing uncertainty in trade. This downturn came after statements from US President Donald Trump suggested that trade agreements with South Korea, Japan, and the European Union might be 'unwound' if the Supreme Court rules against his tariff policies. Although the issue pertains specifically to Section 301 tariffs used during the US–China trade tensions, these remarks heightened investor anxiety regarding the stability of current trade agreements. This policy uncertainty overshadowed favorable economic data, as the Bank of Korea announced a current account surplus of $10.78 billion in July, marking the largest for that month and the 27th consecutive surplus, driven by robust exports and increased overseas equity income.
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