Daijiworld Media Network - Seoul

Seoul, Apr 13: Volatility in South Korea's foreign exchange market surged to its highest level since the country extended trading hours for the won U S dollar market, according to data released on Sunday.

In the second week of April, the weekly fluctuation in the won dollar exchange rate reached 67.6 won, marking the highest level since July 2024, when South Korea extended its FX trading hours from a 3:30 p.m. close to 9 am – 2 am the following day. Compared to previous records before the extended hours, this fluctuation was the largest since November 2022, when the fluctuation reached 101 won.

As of after-hours trading on Friday, the Korean won was quoted at 1,421 against the US dollar, up 40 won from the previous week, marking its strongest level since December 5.

The Korean currency has fluctuated near the 1,450-won mark since December, amid heightened uncertainty due to US tariff threats and a political crisis in South Korea following President Yoon Suk Yeol's imposition of martial law.

The recent volatility was further exacerbated by US President Donald Trump’s decision to pause the implementation of reciprocal tariffs for 90 days, while applying a baseline 10 percent tariff on imports from South Korea and other countries. However, the US also raised tariffs on Chinese goods to 125 percent following Beijing’s retaliatory actions, sparking concerns over a potential global trade war that could have a detrimental impact on South Korea’s export-driven economy.

In an attempt to mitigate some of the effects, the US administration exempted certain electronics, including smartphones, laptops, personal computers, servers, and semiconductor equipment, from the reciprocal tariffs. This exemption provides some relief to South Korea’s Samsung Electronics and other global tech giants.

As the global trade landscape continues to evolve, experts are keeping a close watch on the long-term impact of these tariff measures on both South Korea’s economy and the broader global market.