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Korean won hits over 2-year low on geo-political tensions, Trump tariffs

All Headlines 09:28 May 07, 2019

SEOUL, May 7 (Yonhap) -- The South Korean won hit a two-year low against the U.S. dollar on Tuesday amid increased geo-political risks stemming from North Korea's test-firing of projectiles over the weekend and uncertainties over the trade war between the U.S. and China.

The local currency was changing hands at 1,173.25 won to the greenback as of 9:19 a.m., down 3.25 won from the previous session's close.

North Korea test-fired a number of projectiles into the sea off its east coast on Saturday, the latest saber-rattling amid stalled nuclear negotiations with the U.S.

"The North's provocation is not an expected factor (for the market), and geo-political risks will bubble to the surface," Lee Kyong-min, an analyst at Daishin Securities, said.

The analyst said the event will increase the volatility for the currency market already roiled by a series of events and economic data.

Also, U.S. President Donald Trump's threat to levy additional tariffs on Chinese goods cast a dark cloud over the trade talks between Washington and Beijing, which will further prod investors to chase after safer assets, such as the U.S. dollar, analysts said.


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