Seoul: The Korean currency's volatility over the U.S. dollar intensified last month due to uncertainty surrounding Washington's sweeping tariffs on American imports. This development was highlighted by central bank data released on Sunday.

According to Yonhap News Agency, the average daily fluctuation in the won-dollar rate for April was 9.7 won, or 0.9 percent, based on data from the Bank of Korea (BOK). This represents the largest volatility since November 2022, when fluctuations reached 12.3 won and 0.9 percent amid hopes for a potential shift in the U.S. Federal Reserve's monetary policy. The April figures were significantly higher than those recorded in March, which were 4.3 won and 0.29 percent.

During intraday trading on April 9, the Korean won weakened to 1,487.6 won against the U.S. dollar as the country-specific reciprocal U.S. tariffs took effect. However, it rebounded to 1,420 won just two days later following an announcement by U.S. President Donald Trump, who granted a 90-day pause on the reciprocal tariffs.

Experts predict that the won-dollar exchange rate will continue to exhibit volatility, likely hovering around 1,400 won, with future movements closely linked to developments in U.S.-China trade talks. "As the Korean won is highly correlated with other Asian currencies, including the Chinese yuan, the outcome of U.S.-China trade negotiations is critical," said Moon Jeong-hee, an economist at KB Kookmin Bank.