South Korean Won Eases on Escalating US Tariff Risks

2026-02-24 02:35 By Erika Ordonez 1 min. read

The South Korean won eased to around 1,446 per dollar, retreating slightly from the previous session, as renewed US tariff threats pressured the currency.

Investor caution intensified after Washington signaled it could pursue broader trade actions, including potential Section 301 investigations, raising concerns that Korea’s key exports such as automobiles and semiconductors could face additional scrutiny.

The prospect of heightened trade frictions clouded the export outlook and weighed on the won.

Meanwhile, the Bank of Korea is widely expected to keep its base rate unchanged at 2.50% this week, marking a sixth consecutive hold.

Analysts also anticipate upward revisions to the 2026 growth and inflation forecasts, supported by robust chip exports and firmer domestic demand.

Some economists suggest the next policy move is more likely to be a rate hike than a cut, helping anchor yield support for the won and limiting deeper losses.



News Stream
South Korean Won Eases on Escalating US Tariff Risks
The South Korean won eased to around 1,446 per dollar, retreating slightly from the previous session, as renewed US tariff threats pressured the currency. Investor caution intensified after Washington signaled it could pursue broader trade actions, including potential Section 301 investigations, raising concerns that Korea’s key exports such as automobiles and semiconductors could face additional scrutiny. The prospect of heightened trade frictions clouded the export outlook and weighed on the won. Meanwhile, the Bank of Korea is widely expected to keep its base rate unchanged at 2.50% this week, marking a sixth consecutive hold. Analysts also anticipate upward revisions to the 2026 growth and inflation forecasts, supported by robust chip exports and firmer domestic demand. Some economists suggest the next policy move is more likely to be a rate hike than a cut, helping anchor yield support for the won and limiting deeper losses.
2026-02-24
South Korean Won Extends Gains
The South Korean won rose to around 1,444 per dollar, extending gains from the previous session as broad dollar softness lifted regional currencies including the won. The greenback weakened after a ruling by the US Supreme Court limited President Donald Trump’s use of emergency tariff powers, heightening policy uncertainty and raising the prospect of tariff refunds. Additionally, the won benefited from strong semiconductor-linked momentum and record equity gains in major exporters, reinforcing expectations of sustained export inflows. However, the currency’s upside remained capped after President Trump announced new global tariffs, including a 15% levy that broadly aligns with previously discussed rates. Investors continued to monitor the risk of potential sector-specific measures targeting autos or semiconductors, which could pose downside risks to Korea’s trade surplus and capital flows.
2026-02-23
Korean Won Pauses Losses
The South Korean won inched higher to around 1,448 per dollar, pausing losses as progress on tariff arrangements boosted investor confidence. Attention turned to diplomacy, as a senior South Korean official met the acting US ambassador to discuss bilateral trade and security issues. The two sides agreed to strengthen communication, with talks ongoing on a possible US delegation visit for security discussions from last November’s joint statement. Earlier this week, the Bank of Korea signaled verbal intervention, noting that volatility in key domestic financial indicators has risen and pledging closer monitoring of risks to the economy and financial markets. Still, gains in the won were tempered by renewed dollar strength, as expectations persist that US interest rates may remain elevated, sustaining selling pressure on the currency.
2026-02-19