Dollar-Won Exchange Rate Rises to 1,422 in Overnight Trading Following Trump’s Comments on U.S.-China Trade Relations

The dollar-to-won exchange rate climbed during overnight trading, closing at 1,422.20 won amid a combination of U.S. Dollar strength and South Korean Won depreciation. Former U.S. President Donald Trump’s remarks about potential progress in U.S.-China trade relations contributed to this movement, signaling a possible easing of tension between the two global economic powerhouses.

As of 2 a.m. Korea Standard Time on October 18, the exchange rate settled at 1,422.20 won, marking an increase of 4.30 won compared to the previous day’s closing rate in the Seoul foreign exchange market. This figure also represented a modest gain of 1.00 won from the regular closing price of the Seoul market earlier in the day. Initially hovering around the 1,420 won mark in the early New York trading session, the exchange rate faced upward pressure following Trump’s conciliatory comments.

Trump’s Comments Drive Currency Markets

In an interview with Fox Business Network, Trump offered insights into his administration’s trade policies with China, describing the prevailing tariff measures as “unsustainable, but that’s where we’re at right now.” He emphasized his positive relationship with Chinese President Xi Jinping, expressing optimism about the future: “We get along well, and things with China will be fine.” These remarks suggested a willingness to improve trade dynamics between the U.S. and China, hinting at a fairer deal for both parties.

The comments sent ripples through global financial markets, including the foreign exchange market, influencing major currency pairs. Market sentiment appeared to shift in response to Trump’s statements, with traders reacting to the possibility of reduced trade tensions—a factor that could reshape global risk dynamics in the medium term.

U.S. Dollar Index Reflects Strength Across Markets

The broader strength of the U.S. Dollar provided additional upward momentum to the dollar-won exchange rate. The U.S. Dollar Index (DXY), which gauges the greenback’s performance against six major currencies, rose to 98.53 during the trading session. This bullish performance pushed the dollar-won pair to an intraday peak of 1,423.40 won before easing slightly.

Notable movements in other currency pairs reinforced the dollar’s robust positioning. By 2:53 a.m., the dollar-yen pair stood at 150.391 yen, reflecting steady dollar demand. Meanwhile, the euro-dollar pair settled at 1.16730 dollars, and offshore yuan-dollar trading showed the dollar trading at 7.1258 yuan. Additional data indicated that the yen-won rate reached 944.79 won per 100 yen, while the yuan-won pair traded at 199.41 won.

Trading Range Highlights Market Volatility

During the session, the dollar-won exchange rate fluctuated within a trading range of 9.30 won, recording an intraday high of 1,426.00 won and a low of 1,416.70 won. This range underscored the ongoing market sensitivity to geopolitical developments, particularly those related to U.S.-China trade relations and broader global sentiment.

The underlying dynamics reflected a balance between market participants’ risk appetite and the sustained appeal of the U.S. Dollar as a safe-haven currency. Traders continued positioning themselves based on geopolitical narratives, including the speculative implications of reduced trade friction between the U.S. and China.

Geopolitical and Market Implications

The dollar’s upward trajectory remains supported by its safe-haven status amid persistent global uncertainty. Emerging market currencies, including the Korean won, remain vulnerable to external shocks stemming from geopolitical negotiations, trade policy shifts, and macroeconomic trends. As market participants closely monitor developments in trade negotiations, the dollar-to-won exchange rate is likely to remain sensitive to headlines and policy announcements.

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