South Korean Won Slips Near 2-Month Low

The South Korean won fell to around 1,390 per dollar on Thursday, its weakest level in nearly two months, amid renewed US dollar strength driven by rising US Treasury yields. However, uncertainty lingered over the Federal Reserve’s independence amid reports that President Trump might fire Fed Chair Jerome Powell. Although Trump later downplayed the possibility, the episode underscored investor sensitivity to central bank credibility. In the latest trade news, President Trump plans to send a uniform tariff letter to over 150 smaller countries, setting a baseline rate, while major economies like the EU, Japan, and South Korea have already received individual notices. Seoul is currently working to finalize a framework deal with Washington by August 1 to avoid looming US tariffs on key Korean exports such as autos, steel, and machinery. Trade Minister Yeo Han-koo said talks have made “considerable progress,” particularly in areas of industrial cooperation and potential tariff exemptions.