02.02.202602:00:08UTC+00Won Slips on Fed Uncertainty and Trade Concerns

The South Korean won weakened to approximately 1,457 per dollar, continuing its decline as markets assessed the renewed uncertainty surrounding U.S. monetary policy, further exacerbated by ongoing trade tensions. The nomination of Kevin Warsh by President Trump to lead the Federal Reserve added an element of uncertainty, as traders observed the strengthening dollar and Warsh's stance on inflation and economic growth. Moreover, concerns regarding U.S.-Korea trade relations further dampened market sentiment. High-level discussions in Washington concluded without any significant progress, following President Trump's warning that reciprocal and automotive tariffs on Korean goods might be reinstated to 25%, rekindling apprehensions about Korea's export prospects and policy challenges. Nevertheless, the won's decline was somewhat mitigated by an impressive 33.9% surge in South Korea's exports in January, reaching $65.85 billion, which marks the fastest growth in four and a half years. This increase surpassed expectations, driven by robust demand for AI servers.