ISTANBUL

The South Korean won's volatility against the US dollar rose throughout April, driven by uncertainty about Washington's sweeping tariff policies, Yonhap News reported, citing Central Bank data released on Sunday.

This was the highest level of volatility since November 2022, when fluctuations reached 12.3 won and 0.9% due to expectations of a shift in US Federal Reserve monetary policy.

The April figures were also significantly higher than the March figures, which showed fluctuations of 4.3 won and 0.29%.

On April 9, the Korean won fell to 1,487.6 won per US dollar during intraday trading, coinciding with the implementation of country-specific reciprocal US tariffs.

However, it recovered to 1,420 won just two days later, after US President Donald Trump announced a 90-day pause in reciprocal tariffs.

Currently, trade talks between Seoul and Washington are ongoing after the Trump administration imposed a 25% tariff on South Korea, which has been temporarily reduced to 10% for 90 days.

Experts predict that the won-dollar exchange rate will stay volatile, likely fluctuating around 1,400 won, with future changes closely linked to the progress of US-China trade talks.

"As the Korean won is highly correlated with other Asian currencies, including the Chinese yuan, the outcome of US-China trade negotiations is critical," said Moon Jeong-hee, an economist at KB Kookmin Bank in South Korea.