Dollar-Won Exchange Rate Narrows Loss Despite Slowing U.S. CPI Amid Tariff Concerns, Closes at 1,452.60 Won

# Dollar-Won Exchange Rate Closes at 1,452 Level Amid Persistent Tariff Uncertainty New York (Yonhap) by Jinwoo Choi – The dollar-won exchange rate trimmed its losses during overnight trading to close at the 1,452 level. Despite a slowdown in the rise of U.S. consumer prices, concerns over the uncertainty of President Donald Trump's tariff policies were reflected in the market. As of 2 a.m. Korean time on the 13th, the dollar-won exchange rate finished trading at 1,452.60 won, down 5.60 won from the previous closing price in Seoul. Compared to the previous day's closing price of 1,451.00 won during the day session (9 a.m. to 3:30 p.m.), it rose by 1.60 won. The dollar-won exchange rate, which entered the New York session moving around the 1,451 level, briefly dipped below the 1,450 mark following the release of U.S. February Consumer Price Index (CPI) figures that came in lower than expected. According to the U.S. Department of Labor, February CPI increased by 0.2% from the previous month and by 2.8% year-over-year. Excluding the volatile food and energy sectors, the core CPI increased by 0.2% month-over-month and by 3.1% year-over-year. Both figures were 0.1 percentage points below the market expectations compiled by Yonhap Infomax. Reflecting the lower-than-expected figures, the dollar-won exchange rate briefly dipped to 1,449.40 won. However, considering that the February CPI figures did not fully incorporate the impact of Trump's tariffs and the ongoing uncertainty, the rate quickly rebounded above the 1,450 mark. The Dollar Index (DXY), which measures the dollar's value against six major currencies, also plummeted to 103.312 following the CPI announcement but quickly rebounded to 103.783. "The outlook for inflation has become increasingly uncertain as various economic factors begin to exert their effects," said Sung Won Sohn, an economics professor at Loyola Marymount University. "One key factor is the impact of tariffs that have begun to affect consumer prices." "Given the current uncertainty, it is highly likely that the Federal Reserve will adopt a cautious approach, maintaining interest rates at their current levels until the inflation trend becomes clearer," Sohn added. Subsequently, the dollar-won exchange rate rose to 1,453.30 won, absorbing the ongoing trade tensions between the United States and major trading partners. The U.S.'s imposition of a 25% tariff on steel and aluminum has led to retaliatory tariffs from the European Union (EU) and Canada, escalating the trade war. The EU imposed tariffs on $41 billion worth of U.S. goods, while Canada imposed tariffs on $30 billion worth of American products. In response to the EU's retaliatory tariffs, President Trump stated from the Oval Office that he would "of course, respond." As of 2:37 a.m., the dollar-yen exchange rate stood at 148.303 yen, while the euro-dollar exchange rate was at 1.09091 dollars. The offshore dollar-yuan (CNH) exchange rate was trading at 7.2384 yuan. The yen-won cross rate was quoted at 978.22 won per 100 yen, while the yuan-won exchange rate was at 200.35 won. Throughout the day, the dollar-won exchange rate reached an intraday high of 1,455.40 won and a low of 1,447.00 won, with a volatile swing of 8.40 won. The total spot market trading volume, including both Seoul Foreign Exchange Brokerage and Korea Money Brokerage, was recorded at $14.613 billion. jwchoi@yna.co.kr