[Evening Closure] Dollar-Won Volatile During U.S.-Korea Trade Talks… Ends at 1,404.50 Won

# South Korean Won Strengthens Against Dollar Amid Currency Collaboration Signals During overnight trading, the South Korean Won appreciated against the U.S. Dollar, reversing early losses and closing at the lower end of the 1,400 won range. As of 2:00 a.m. on October 15 (Korea Standard Time), the Dollar-Won exchange rate settled at 1,404.50 won, an 11.50 won decrease from the previous closing price in the Seoul forex market. Compared to the daytime close of 1,420.20 won, the rate fell by 15.70 won. # Currency Moves Amid Speculation of U.S.-South Korea Coordination The exchange rate was highly volatile during the London trading session, with the Dollar-Won rate dropping to the low 1,390 won levels. Market sentiment improved on news of possible currency collaboration between South Korea and the United States, raising optimism for further appreciation of the Korean Won. The Deputy Minister for International Economic Affairs of South Korea, Choi Ji-young, recently had an hour-long exchange rate discussion with Robert Kaproth, Acting Deputy Assistant Secretary of the U.S. Treasury Department. This meeting took place on October 5 during the Asian Development Bank Annual Meeting in Milan. However, later in the New York trading session, speculation surfaced that the U.S. might avoid pressuring trade partners to devalue the dollar in broader trade negotiations. This speculation led to a contraction of initial losses in the Dollar-Won rate. # U.S. Trade Policy and Currency-Based Pledges Reports indicate that the U.S. trade negotiation team does not intend to include a currency policy pledge in its agreements with South Korea. Current currency-related policies are managed solely by U.S. Treasury Secretary Scott Besant, and no other officials have been authorized to address exchange rates in trade discussions. Therefore, any discussions about exchange rates will likely involve Besant directly. The uncertainty over the U.S. approach to currency issues in trade negotiations has increased volatility in the Dollar-Won exchange rate. Analysts expect this uncertainty to persist until definitive results emerge from ongoing U.S.-South Korea trade talks. # Wall Street Takes Note of a Strengthening Korean Won Fox Business reporter Charles Gasparino boosted optimism with a post on his X account (formerly Twitter), noting that the U.S. is nearing the completion of trade deals with South Korea and Japan. While details remain scarce, his post briefly heightened hopes of an imminent agreement. Goldman Sachs analysts echoed this sentiment in a client note, stating that ongoing U.S.-South Korea trade talks renew focus on the Korean Won as an undervalued trade surplus currency in a weak dollar environment. # Broader Currency Markets and Key Exchange Rates As of 3:20 a.m., key exchange rates were as follows: the Dollar-Yen at 146.720 yen, the Euro-Dollar at $1.11794, and the offshore Dollar-Renminbi at 7.2111 yuan. The Yen-Won cross rate was 968.89 won per 100 yen, while the Yuan-Won rate was 197.00 won. For the day, the Dollar-Won exchange rate hit an intraday high of 1,422.30 won and a low of 1,390.80 won, spanning a total trading range of 31.50 won. Combined spot forex trading volume reached $12.07 billion during overnight trading on platforms such as Seoul Foreign Exchange Brokerage and Korea Money Brokerage. Markets will continue to closely monitor developments in U.S.-South Korea currency and trade discussions, with significant implications for the broader foreign exchange landscape.