Overview

• The Korean won strengthened to 1,366.5 per dollar, its highest level since October 2024, with a 2.45% weekly gain.
• The US dollar's decline is attributed to economic uncertainty, political instability, and concerns over fiscal policy under the Trump administration.
• Analysts suggest the won's appreciation reflects market expectations of a stronger currency being favorable in ongoing US-Korea trade negotiations.
• The Bank of Korea is expected to cut its base interest rate by 0.25 percentage points on Thursday to support the economy, which contracted in Q1 2025.
• Economic experts predict the won may continue to rise, potentially reaching the low 1,300s per dollar if current trends persist.