Dollar gains as US signals softening stance on trade
The South Korean won weakened past the 1,400 level against the dollar on May 9, rising for a second day as optimism over easing global trade tensions strengthened the greenback.
The won opened at 1,404.8 per dollar in onshore trading, up 8.2 won from the prior session, reflecting a broader dollar rally after the United States and United Kingdom reached a trade deal and U.S. President Donald Trump signaled possible tariff relief for China.
The dollar index, which measures the greenback against six major currencies, rose above 100 after the U.S.-UK agreement was announced, reaching 100.6 on May 8, U.S. time.
U.S. President Donald Trump announces a trade agreement as Commerce Secretary Howard Lutnick, Vice President J.D. Vance, British Ambassador to the United States Peter Mandelson, U.S. Trade Representative Jamieson Greer and Agriculture Secretary Brooke Rollins look on in the Oval Office of the White House in Washington on May 8, 2025./AFP-Yonhap
Under the deal, the United States agreed to cut tariffs on up to 100,000 British-made cars from 25% to 10%, and to remove 25% tariffs on British steel and aluminum. In return, the UK will open its market to American ethanol, beef, agricultural goods and machinery, and purchase $10 billion worth of Boeing aircraft.
Trump also fueled dollar strength by expressing optimism about ongoing trade talks with Beijing. When asked whether U.S. tariffs on Chinese goods could be lowered if negotiations go well, he replied: “You can’t get any higher. It’s at 145, so we know it’s coming down.”
“I think it’s a very friendly meeting. They look forward to doing it in an elegant way,” Trump said of the U.S.-China discussions.