The South Korean won strengthened to around 1,428 per dollar on Wednesday, extending gains to its strongest level in almost three months, tracking broad US dollar weakness. The greenback slid to multi-year lows as markets were emboldened by President Donald Trump’s remarks signaling comfort with a weaker dollar, reinforcing selling pressure and lifting Asian currencies broadly. The won also drew support from strong foreign demand for Korean equities, with the KOSPI pushing fresh record highs led by semiconductors, autos, and battery stocks, boosting FX inflows. Meanwhile, trade-related risks with the United States remain a key overhang, following renewed tariff threats earlier in the week. However, near-term pressure eased after President Trump said Washington would “work something out” with Seoul, helping markets treat the dispute as a negotiation risk rather than an immediate policy shock.
