The South Korean won weakened to around 1,393 per dollar on Tuesday, reversing gains from the previous session as investors cautiously await developments in the US–South Korea tariff talks.
A South Korean delegation is scheduled to arrive in Washington on May 20 for a second round of technical talks, with both sides aiming to finalize a comprehensive “package” deal by early July.
The US imposed reciprocal tariffs on several trading partners in April, including a 25% levy on South Korean goods, although the measures were suspended for 90 days to allow time for bilateral discussions.
Previous meetings took place in Washington and on South Korea’s Jeju Island, where Seoul lobbied for full tariff exemptions.
Meanwhile, investors are closely watching the Bank of Korea’s upcoming policy decision next week, following a 25 bps cut in February aimed at supporting the won amid the impending US tariff measures.