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Bloomberg
22-05-2025
- Business
- Bloomberg
Won Touches Seven-Month High on Report of Currency Talks With US
The South Korean won climbed to a seven-month high late Wednesday after local media reported the direction of the currency was discussed during trade talks with the US. The currency rallied after Korea Economic Daily cited an unnamed government official as saying the US believes a relatively weak won is a fundamental cause of the Asian nation's trade surplus. The talks are ongoing and nothing has been decided yet, Korea's finance ministry said in a statement.
Straits Times
22-05-2025
- Business
- Straits Times
South Korean won touches seven-month high on report of currency talks with US
SEOUL – The South Korean won climbed to a seven-month high late on May 21 after local media reported the direction of the currency was discussed during trade talks with the US. The currency rallied after newspaper Korea Economic Daily cited an unnamed government official as saying the US believes a relatively weak won is a fundamental cause of the Asian nation's trade surplus. The talks are ongoing and nothing has been decided yet, Korea's finance ministry said in a statement. The won advanced as much as almost 2 per cent to 1,368.50 per dollar on May 21, the strongest level since October 2024. The currency unwound some of those gains on May 22, weakening 0.6 per cent. 'The idea of currency accords was always mostly the cherry on top for what was already a compelling medium bullish case for Asia FX,' said Mr Richard Franulovich, head of foreign-exchange strategy at Westpac Banking in Sydney. The won's volatility comes amid concern the US is using the threat of higher tariffs to convince its trading partners to allow their currencies to strengthen. US President Donald Trump and other officials in his administration have long argued weakness in Asian currencies is handing exporters in the countries an unfair advantage. The won sunk to the weakest level in a decade in April as rising trade tensions following Mr Trump's 'liberation day' tariff threats sapped demand for emerging-market assets. While strengthening in recent weeks, the won is still one of the world's most undervalued currencies, based on its real effective exchange rate. The yen briefly weakened earlier on May 22 after US Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato reaffirmed that markets should dictate currency levels. Korea's currency has strengthened almost 7 per cent against the greenback this quarter, the best performer in Asia after the Taiwan dollar, according to data compiled by Bloomberg. The won closed 0.9 per cent higher on May 14 after a media report said officials from Korea and the US discussed currency policy at a meeting in Milan. 'I foresee challenges with putting exchange-rate clauses that target certain levels in any trade agreement, so would not necessarily think a trade-related catalyst is pending,' said Mr Brendan McKenna, a strategist at Wells Fargo in New York. Still, 'the won could certainly strengthen more if local officials agree to certain FX sticking points,' he said. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Time of India
21-05-2025
- Business
- Time of India
South Korea's won gains after report on US demand for stronger currency
South Korea's currency rose sharply against the dollar on Wednesday after a media report that the United States had demanded that Seoul come up with measures to boost the won. Last month, South Korea and the United States agreed to craft a trade package aimed at removing new U.S. tariffs before President Donald Trump 's 90-day pause on reciprocal tariffs ends in July. South Korea also agreed to hold separate discussions on currency policy at the request of U.S. Treasury Secretary Scott Bessent. The Korea Economic Daily said on Wednesday that Washington has demanded Seoul come up with measures for a stronger won during talks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bangladesh: Unsold Sofas at Bargain Prices (View Current Prices) Sofas | Search Ads Search Now Undo South Korea's finance ministry said it was in working-level discussions on exchange rates with the United States, but that no details have been finalised. The Korean won last traded at 1,374.62 per dollar, compared with 1392.4 at the previous close. South Korea's deputy finance minister Choi Ji-young met Assistant Secretary for International Finance at the U.S. Treasury, Robert Kaproth, to discuss the dollar/won market on May 5. The won was the weakest performer among emerging Asian currencies last year, having fallen more than 14% against the dollar. A weaker won boosts the price competitiveness of Korean exports such as cars, and helped Korea report a record trade surplus with the United States last year. Live Events
Free Malaysia Today
23-04-2025
- Business
- Free Malaysia Today
China asks S. Korea not to ship products using rare earths to US defence firms
China produces around 90% of the world's rare earths, a group of 17 elements. (EPA Images pic) SEOUL : Beijing recently asked South Korean companies not to ship products containing China's rare earth minerals to US defence firms, the Korea Economic Daily reported yesterday, citing government and company sources. The report had initially said China's ministry of commerce warned Korean companies they could face sanctions if they violated the export restrictions. The ministry delivered the message in letters to Korean companies which make power transformers, batteries, displays, electric vehicles, aerospace and medical equipment, the report said. The Korea Economic Daily report was later corrected to the 'Chinese government' delivering the message, rather than the commerce ministry. South Korea's industry ministry said today it was checking with the Chinese government and South Korean companies in order to confirm the report. 'So far, it has not been confirmed that South Korean companies have received an official letter from the Chinese government as per the report,' the ministry said. China's ministry of commerce did not respond to questions. Early this month, China placed export restrictions on rare earth elements as part of its sweeping response to Washington's tariffs, restricting the supply of minerals used to make weapons, electronics and a range of consumer goods. Exporters must now apply to the ministry of commerce for licences, a relatively opaque process that can range from six or seven weeks to several months. China produces around 90% of the world's rare earths, a group of 17 elements. The US government has stockpiles of some rare earths, but not enough to supply its defence contractors in perpetuity. South Korea said in early April it had more than six months of stockpiles of some of the seven rare earths restricted by China, including dysprosium, used in special magnets found in the clean energy sector, including electric vehicles and wind turbines. Senior South Korean government officials are set to meet their US counterparts in Washington tomorrow to discuss tariffs. China on Monday warned countries against striking a broader economic deal with the US at its expense.
The Star
23-04-2025
- Business
- The Star
China asks Korea not to supply products using rare earths to US defence firms, paper reports
A worker at the Jinyuan Company's smelting workshop, prepares to pour the rare earth metal Lanthanum into a mould near the town of Damao in China's Inner Mongolia Autonomous Region October 31, 2010. China produces around 90 per cent of the world's rare earths. - Reuters SEOUL: Beijing recently asked South Korean companies not to ship products containing China's rare earth minerals to US defence firms, the Korea Economic Daily reported on Tuesday (April 22), citing government and company sources. The report had initially said China's Ministry of Commerce warned Korean companies they could face sanctions if they violated the export restrictions. The ministry delivered the message in letters to Korean companies which make power transformers, batteries, displays, electric vehicles, aerospace and medical equipment, the report said. The Korea Economic Daily report was later corrected to the "Chinese government" delivering the message, rather than the commerce ministry. South Korea's industry ministry said on Wednesday it was checking with the Chinese government and South Korean companies in order to confirm the report. "So far, it has not been confirmed that South Korean companies have received an official letter from the Chinese government as per the report," the ministry said. China's Ministry of Commerce did not respond to questions. Early this month, China placed export restrictions on rare earth elements as part of its sweeping response to US tariffs, restricting the supply of minerals used to make weapons, electronics and a range of consumer goods. Exporters must now apply to the Ministry of Commerce for licences, a relatively opaque process that can range from six or seven weeks to several months. China produces around 90 per cent of the world's rare earths, a group of 17 elements. The US government has stockpiles of some rare earths, but not enough to supply its defence contractors in perpetuity. South Korea said in early April it had more than six months of stockpiles of some of the seven rare earths restricted by China, including dysprosium, used in special magnets found in the clean energy sector, including electric vehicles and wind turbines. Senior South Korean government officials are set to meet their US counterparts in Washington on Thursday to discuss tariffs. China on Monday warned countries against striking a broader economic deal with the US at its expense. - Reuters
