SK Won Falls on Softer Exports, PMI Weakness

The South Korean won fell to around 1,392 per dollar on Monday, retreating from the prior week’s stability, as weaker trade metrics weighed on sentiment. Customs data showed South Korea’s merchandise exports expanded by 1.3% year-on-year in August to $58.40 billion, undershooting forecasts of 3.0% and slowing from July’s 5.9% gain. The shortfall was mainly due to a double-digit drop in US shipments, the steepest since the COVID-19 period amid higher tariffs. Meanwhile, factory activity contracted for a seventh straight month, with the S&P Global manufacturing PMI at 48.3 versus 48.0 in July, remaining below the 50 threshold that signals expansion. This aligned with Bank of Korea warnings of a “significant shock” for an economy reliant on US-bound exports. The central bank sees tariffs cutting 2025 and 2026 growth by 0.45 and 0.60 percentage points, with forecasts at 0.9% and 1.6%.