Seoul, Feb 3 (IANS) The South Korean currency weakened sharply against the US dollar on Monday on growing concerns about the impact of the Donald Trump administration’s sweeping tariff plan on the South Korean economy and businesses.
The Korean won opened at 1,466 won per dollar, down 13.3 won from the previous session, and fell further to 1,471.35 won as of 10 a.m.
Monday’s reading was the lowest level so far this year, as the previous yearly low was 1,470.8 won quoted on January 13, reports Yonhap news agency.
The local currency has stayed near the 1,450 won level since December, the lowest level since March 2009 in the aftermath of the global financial crisis, due to the continued strengthening of the dollar amid Trump’s tariff warnings and a domestic political crisis sparked by President Yoon Suk Yeol’s martial law imposition.
On Saturday (U.S. time), Trump announced he will impose 25 per cent tariffs on imports from Canada and Mexico and 10 per cent on goods from China starting from Tuesday. He also pledged to place new tariffs on goods from the European Union.
The sweeping tariffs and expected retaliatory measures are feared to adversely affect South Korean companies that have production bases in those countries.
South Korean stocks opened sharply lower on Monday on concerns over the United States’ decision to impose high tariffs on goods imported from Canada and Mexico, potentially affecting South Korean businesses operating there.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 56.45 points, or 2.24 percent, to 2,460.92 in the first 15 minutes of trading.
The move is expected to adversely affect Samsung Electronics, LG Electronics and other major Korean companies that have production bases in those countries.
Blue chips retreated across the board, with market heavyweight Samsung Electronics down 2.1 percent and its chipmaking rival SK hynix plunging 3.77 percent.
Automotive and steel shares also traded in negative territory. Hyundai Motor and Kia slipped 1.46 percent and 2.25 percent, respectively, and top steelmaker POSCO Holdings plummeted 4.03 percent.
—IANS
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