Korean won again nears 1,470 won mark amid Trump tariff shockwave

An electronic signboard at a Hana Bank dealing room in Seoul shows the benchmark KOSPI fell 117.15 points to 2,348.27 points, while the Korean currency strengthend by 34.30 won to close at 1,468.4 won per dollar, Monday. Yonhap

The Korean currency traded markedly lower against the U.S. dollar Monday amid concerns over the impact of the Donald Trump administration's sweeping tariff scheme.

The Korean won opened at 1,462.0 won per dollar, down 27.9 won from the previous session, and had weakened further to 1,468.65 won as of 10 a.m.

The won's decline came as Trump pledged to impose "reciprocal" tariffs on imports from most of the world, including 25 percent duties on Korean goods, which are set to take effect on Wednesday (U.S. time). He also implemented a 10 percent "baseline" tariff on foreign imports starting Saturday.

The local currency has flirted with the 1,470 won level against the greenback recently, a level unseen in about 16 years since March 2009, when the country was grappling with the aftermath of the global financial crisis.

Experts have warned of market volatility amid heightened uncertainties stemming from the tariff policy and the domestic political situation.

On Friday, the won posted its sharpest gain in about 2 1/2 years against the U.S. dollar and was quoted at 1,434.1 won, the highest level since late February, following the Constitutional Court's decision to remove President Yoon Suk Yeol from office.

Trump's tariff policy also battered the local stock market Monday, with the benchmark Korea Composite Stock Price Index (KOSPI) sinking 5.09 percent as of 10 a.m.

Trump has defended his policy, saying, "Sometimes you have to take medicine to fix something," according to foreign media reports. (Yonhap)