Dollar-Won Rises Sharply on Trump's EU Tariff Threats, Closes at 1,457 Won

# Dollar-Won Exchange Rate Rises Amid Trump's Tariff Threats (New York=Yonhap) By Choi Jin-woo, Yonhap Infomax Correspondent - The dollar-won exchange rate surged during overnight trading, climbing to the high 1,450-won range. This increase followed U.S. President Donald Trump's tariff threats aimed at the European Union (EU). As of 2 a.m. Korea time on the 14th, the dollar-won exchange rate concluded trading at 1,457.00 won, up 6.00 won from the previous day's closing price on the Seoul Forex Market. Compared to the weekly closing price of 1,453.80 won, this marks a 3.20 won increase. # Trump's EU Tariff Threats Moving within the 1,455-1,456 won range, the dollar-won exchange rate expanded its upward trajectory after Trump's statement. The U.S. President posted on his social media platform, Truth Social, claiming, "The EU was formed solely to take advantage of the U.S., imposing a horrific 50 percent tariff on whiskey." He added, "If this tariff is not immediately withdrawn, the U.S. will soon impose a 200 percent tariff on all wine, champagne, and spirits originating from France and other EU countries." # Impact of U.S. PPI Data Subsequently, U.S. Producer Price Index (PPI) data for February was released, pushing the dollar-won exchange rate to an intraday high of 1,457.70 won. According to the U.S. Department of Labor, the PPI for February remained flat compared to the previous month on a seasonally adjusted basis. This marks a slowdown from the 0.5% increase in December and the 0.6% rise in January, and it also falls short of Yonhap Infomax's market forecast of a 0.3% increase. # Inflation Concerns However, rising costs in categories that impact the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, such as hospital services (1.0%) and portfolio management fees (0.5%), heightened inflation concerns. Some analysts noted that the February PPI data did not fully capture the potential impact of Trump's tariff policies. Paul Stanley, co-founder of KCP Asset Management, remarked, "Thursday's inflation data is retrospective. The real concern lies in the inflationary effects that tariffs could trigger." # Dollar Index and Global Exchange Rates The Dollar Index (DXY), which reflects the dollar's value against six major currencies, surpassed 104 as markets digested Trump's comments and the PPI data. By the close of trading, the dollar-won exchange rate remained around the 1,457 won level. As of 2:41 a.m., the dollar-yen exchange rate was at 147.520 yen, while the euro-dollar rate stood at 1.08640 dollars. The offshore dollar-yuan (CNH) exchange rate was 7.2473 yuan. The yen-won fiscal exchange rate was at 985.62 won per 100 yen, and the yuan-won exchange rate was at 200.63 won. # Intraday Highs and Trading Volumes The intraday high for the dollar-won exchange rate was 1,457.70 won, with a low of 1,449.20 won, resulting in a fluctuation range of 8.50 won. The total spot transaction volume, combining Seoul Foreign Exchange Brokerage and Korea Money Brokerage, amounted to $12.139 billion for the entire day, including overnight trading. (Reporting by Choi Jin-woo, Yonhap Infomax, jwchoi@yna.co.kr)