South Korea's won plunges, down 33.7 won against the dollar... Won falls sharply since COVID-19 outbreak, raising concerns over intensifying US-China friction

The won-dollar exchange rate fell sharply on the Seoul foreign exchange market on the 7th. The weekly closing price (3:30 p.m.) was 1,467.8 won, down 33.7 won from the previous weekend.
This was the largest drop in about five years since March 19, 2020 (down 40.0 won), at the beginning of the pandemic.
Immediately after the start of trading, the rate hit 1,462 won, but by mid-morning it had fallen to 1,471.5 won.
The won weakened against the US dollar. After that, the won recovered to the 1,461 won range, but it weakened again and closed at the 1,467 won range.
The dollar index, which indicates value, rose 0.64% from the previous weekend to 102.546. The background to the won's sharp fall was China's announcement of retaliatory tariffs against the US tariffs on China.
In the past, there was a growing sense of caution that trade friction between the United States and China would intensify. Risk aversion spread, and the dollar and yen, which are considered relatively safe assets, were bought. As a result, the won-to-yen exchange rate
The dollar also briefly exceeded 1,000 won, hitting its highest level in about three years. China announced that it would impose an additional 34% tariff on all imports from the United States starting on the 10th.
"Compared to the tariff measures imposed in February and March, which were limited to certain items, this is a tougher response than expected," Choi Seol-hwa said.
There is a strong view among market participants that the repercussions of the trade friction between the United States and China will remain significant.
It has also been pointed out that the United States may retaliate against China's retaliatory measures with additional tariffs. Researcher Choi believes that in order to break this deadlock, "the leaders of the two countries will need to hold telephone talks or a summit meeting.
"A higher level of dialogue will be needed, such as on the basis of the United Nations Framework Convention on Trade and Industry (UNFCCC)."