Seoul: The South Korean currency rose markedly against the U.S. dollar Wednesday, reaching its highest level in more than five months, amid hopes for easing trade tensions between the United States and China. The Korean won was quoted at 1,398 won per dollar, up 7.3 won from the previous session.

According to Yonhap News Agency, this marks the highest level since Nov. 30, 2024, when the currency was quoted at 1,394.7 won. It also signifies the first time since November that the won has strengthened past the closely watched level of 1,400 won. The won's strength was in line with gains by its Asian peers this week, as U.S. Treasury Secretary Scott Bessent and China's Vice Premier He Lifeng are scheduled to hold bilateral trade negotiations in Switzerland this weekend.

The won had previously weakened significantly and remained well above 1,400 won due mainly to concerns about the Donald Trump administration's sweeping tariff scheme and political instability following former President Yoon Suk Yeol's martial law declaration in December. Consultations are under way between Seoul and Washington about the new tariff scheme, as the two nations agreed last month to seek a package agreement on trade and other related issues before July 8, when Trump's 90-day pause on reciprocal tariffs ends.

South Korea is scheduled to hold a presidential election on June 3 following Yoon's impeachment.