Korean won weakens against U.S. dollar amid concerns about global currency war

Korean won weakens against U.S. dollar amid concerns about global currency war

The Korean won strengthened against U.S. dollar
on Thursday amid concerns the Trump administration could lead the world into a new wave of currency
wars. A stronger won could hurt the Korean economy,
which relies in large part on exports. Kim Hyesung explains further. U.S. President Donald Trump’s accusation that
China and Japan are manipulating their currencies has sent shockwaves around the world, and
Korea is feeling it too. His comments, signaling a preference for a
weaker dollar, saw the Korean won strengthen against the greenback on Thursday, closing
below the 1-thousand-1-hundred-50-won mark for the first time in three months. That’s in sharp contrast to the latter part
of last year when the Korean won weakened between September and December… due to the
U.S. rate hike and Trump’s campaign promises to boost government spending. The weaker won gave Korean exports a competitive
edge, making them relatively cheaper on the global market. And in fact, according to the Ministry of
Trade, Industry and Energy, Korea’s exports increased for three straight months, a welcome
turnaround, recording over 40 billion dollars in January… for an on-year increase of 11-point-2
percent. But this trend could be short-lived. –
“The Korean won has strengthened against the dollar since early Janauary, and it’s gaining
pace. A stronger won is likely to hurt Korean exports,
which have been rising since November. But in the long run, the dollar is likely
to keep getting stronger with the Fed expected to raise interest rates and the U.S. economic
recovery to gain traction on tax cuts and deregulation.” But with the Trump administration continuing
to push for protectionism… and the renegotiation of existing trade deals,… many Korean exporters
are worried that a currency war or trade war could be around the corner. Kim Hyesung, Arirang News.

One thought on “Korean won weakens against U.S. dollar amid concerns about global currency war

  1. It's weakening because of white supremacy , so don't support them period , They just want complete control of everything and everyone (Illuminati) , white people are the deceivers real terrorist , Native Americans black people were first targeted by them and now Minorities here in the states , white supremacy is something that need be taken seriously globally .

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