Korean won dips to over 5-month low
A worker checks US$100 bills at a bank branch of Hana Bank in central Seoul, Friday. Yonhap
The South Korean won fell sharply against the U.S. dollar Friday, dipping to its lowest level in more than five months, weighed down by uncertainties stemming from a government shutdown in the United States and ongoing tariff negotiations with Washington.
The won was quoted at 1,421 against the greenback as of 3:30 p.m., down 21 won from the previous session. It marked the weakest level since April 30, when it also closed at 1,421 won.
The currency slipped past the psychologically important level of 1,400 won on Sept. 25 and extended its losses, as follow-up trade talks with the U.S. showed little progress.
In late July, Seoul pledged to invest $350 billion in the U.S. as part of a package deal related to President Donald Trump's new tariff scheme, but the two sides have yet to finalize details of the bilateral agreement.
Trump has insisted that South Korea provide the investment funds "up front." Seoul says doing so without securing an unlimited currency swap line as a safeguard could trigger a financial crisis.
In a meeting held earlier in the day, Bank of Korea's Deputy Gov. Ryoo Sang-dai said the central bank will closely monitor the market, citing lingering global risk factors, such as Washington's tariff policies, a prolonged U.S. government shutdown and concerns over the fiscal soundness of other economies.