Won Slips on Fed Uncertainty and Trade Concerns

2026-02-02 02:00 By Mariene Camarillo 1 min. read

The South Korean won weakened to around 1,457 per dollar, extending losses for another session, as markets digested renewed uncertainty over US monetary policy, compounded by lingering trade tensions.

President Trump’s nomination of Kevin Warsh to lead the Fed added uncertainty, as traders eyed a stronger dollar and his approach to inflation and growth.

Sentiment was further dampened by US–Korea trade concerns.

High-level talks in Washington ended without a breakthrough after Trump warned that reciprocal and auto tariffs on Korean goods could be lifted back to 25%, reviving fears over Korea’s export outlook and policy risks.

Meanwhile, the won’s decline was partly cushioned as South Korea’s exports rose 33.9% in January to $65.85 billion, marking the fastest growth in four and a half years and exceeding forecasts, driven by strong demand for AI servers.



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