The South Korean won weakened to around 1,365 per dollar on Friday, extending its downward trend as it tracked broader dollar strength following a stronger-than-expected US nonfarm payrolls report which reduced expectations for Fed rate cuts.
While South Korea posted a solid current account surplus of $10.14 billion in May, fundamentally supportive of the won, it was outweighed by global USD strength. On the trade front, uncertainty continues to weigh on sentiment ahead of the July 9 US tariff deadline. Trade Minister Yeo is scheduled to visit Washington this weekend in a last-minute push to secure an extension of the current three-month pause. The outcome of the talks is critical, as it could impact key exports and add further pressure on the KRW.
