28.10.202504:18:39UTC+00South Korean Won Slips Amid Diplomatic Caution

On Tuesday, the South Korean won depreciated to approximately 1,436 against the dollar, reversing the gains from the previous trading session. This shift occurred as traders exercised caution ahead of U.S. President Donald Trump's meetings with Asian leaders this week. During his visit to Tokyo, President Trump alongside Japan's Prime Minister Sanae Takaichi, signed an agreement aimed at fortifying cooperation in the supply chains of rare-earth and critical minerals. Investors are also closely monitoring Trump's upcoming discussions with Chinese President Xi Jinping at the APEC summit later this week, looking for indications regarding potential changes in tariffs and export controls that could influence regional trade dynamics. Concurrently, the U.S. dollar showed some weakening, although it provided only limited relief for the won due to the prevailing caution ahead of the Federal Reserve's policy announcement. Furthermore, preliminary data indicated that South Korea's economy expanded by 1.2% in the third quarter, offering modest reassurance regarding its growth trajectory.