USD/KRW faces pressure as US-South Korea tariff talks hit roadblocks

USD/KRW remains elevated near 1,470 levels as diplomatic tensions arise from difficult US-South Korea tariff negotiations ahead of the July 8 deadline. South Korean officials, led by negotiator Lee, have expressed concerns about the challenging nature of discussions, citing a lack of clarity from both sides regarding specific tariff objectives. The uncertainty surrounding potential trade barriers is weighing on the Korean won, as investors price in the risk of increased import costs and potential disruptions to South Korea's export-driven economy. Market participants are closely monitoring developments, as any breakdown in negotiations could trigger further won weakness. Technical indicators suggest USD/KRW could test resistance at 1,475 if talks deteriorate, while successful resolution might provide support near 1,465. The situation adds to existing pressure on Asian currencies amid broader concerns about US trade policy shifts.