The South Korean won strengthened to about 1,370 per dollar on Wednesday, amid expectations of renewed momentum in trade talks with Washington aimed at finalizing tariff relief by early July. This development coincides with the broader optimism over President Lee Jae-myung’s corporate reform agenda, steady foreign capital inflows, ongoing government stimulus, and the Bank of Korea’s cautious approach to policy adjustments.
While the won showed relative strength, external risks continue to weigh on sentiment. Oil prices have surged due to Middle East tensions, potentially increasing import costs, and export prices declined in May, reflecting soft global demand. Despite recent gains, the won remains exposed to geopolitical instability, trade friction, and diverging global monetary policies.
