The South Korean won weakened to around 1,437 per dollar, retreating from a near three-month high in the previous session, as renewed uncertainty over US-Korea trade relations weighed on sentiment. The first day of high-level talks in Washington ended without an agreement after President Donald Trump warned that reciprocal and auto tariffs on Korean goods could be raised back to 25%. This heightened concerns over Korea’s export outlook and lingering policy risks, limiting further gains in the won despite recent stabilization efforts. Meanwhile, the dollar found modest support as global markets turned cautious after Trump said he would soon announce his pick for the next Federal Reserve chair, pressuring regional currencies, including the won. Softer risk appetite across equities and cryptocurrencies underpinned mild dollar demand, encouraging profit-taking after the currency’s recent rally.
