The South Korean won steadied around 1,397 per dollar on Monday amid a weakening US dollar following an unexpected downgrade of the US credit rating.
On Friday, Moody’s announced it was lowering the US rating from Aaa to Aa1, citing a widening budget deficit and rising interest costs.
Meanwhile, investors are closely monitoring developments in US–South Korea trade talks following a swift trade truce between the US and China.
In the latest update, South Korea’s Trade Minister Ahn Duk-geun cautioned on Friday that reaching a tariff agreement with the US by the July deadline may be delayed due to ongoing domestic political hurdles.
However, he noted that both sides will hold technical consultations this week to advance negotiations, with another ministerial meeting expected in June.