South Korean Won Retreats

The South Korean won weakened to around 1,376 per dollar on Friday, snapping a five-session rise, as pressure mounted on Seoul following Japan’s recent trade deal with the U.S. Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo have been in Washington, with one official describing the ongoing negotiations as entering a “critical final phase.” On the data front, South Korea’s exports fell 2.2% yoy in the first 20 days of July, mainly due to weaker demand from the U.S. and China amid tariff concerns. Imports shrank 4.3%, reversing a 3.3% growth in June. Meanwhile, producer prices rose 0.5% in June, up from May’s three-year low of 0.3%. Adding to pressure on the won, the U.S. dollar index hovered around 97.6, extending its recent gains, after jobless claims fell for the sixth straight week. President Trump visited the Fed Thursday ahead of next week’s policy meeting, where the central bank is expected to hold rates amid concerns that trade tensions could fuel inflation.