Due to Trump's Tariff Pressure... Won-Dollar Exchange Rate Hits 1460 Won Level After One Month (Update)

Closed at 1,463.4 Won, Up 20.4 Won
Risk Aversion Heightens as Trump Reaffirms Tariff Pressure
Highest Level Since the 4th

The won-dollar exchange rate rose back to the 1460 won level as the tariff war triggered by Trump was reaffirmed.

On the 28th, dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News.

On the 28th, in the Seoul foreign exchange market, the won-dollar exchange rate recorded 1,463.4 won at 3:30 PM, up 20.4 won from the previous day. Considering the 9.9 won increase the day before, it rose more than 30 won in two days. This is the first time since the 4th (1,462.9 won) that the afternoon closing price exceeded 1,460 won.

The exchange rate started at 1,451.0 won, up 8.0 won, and gradually increased its gains.

On this day, the foreign exchange market was influenced by heightened risk aversion sentiment as U.S. President Donald Trump continued his remarks on tariffs. On the 27th (local time), President Trump announced that if the synthetic drug problem flowing into the U.S. is not resolved or significantly improved, the 25% tariffs currently deferred on Canada and Mexico will be imposed as scheduled on March 4, and on the same day, an additional 10% tariff will be imposed on China.

Massive selling by foreigners in the domestic stock market also acted as pressure for the exchange rate to rise. On this day, the KOSPI closed at 2,532.78, down 88.97 points (3.39%) from the previous day. Foreigners net sold about 1.5566 trillion won in the securities market.

Min Kyung-won, a researcher at Woori Bank, said, "The risk appetite sentiment deteriorated all at once as President Trump pressured tariff increases," adding, "It was confirmed that the demand for exchange rates from Korean residents investing in overseas stocks rigidly supports the lower bound of the exchange rate, preventing it from falling below 1,430 won, which led to strong dollar buying both inside and outside the region." He further analyzed, "Foreigners' net selling in the domestic stock market also had an impact."

This content was produced with the assistance of AI translation services.