16.09.202502:15:33UTC+00Won Strengthens on Fed Cut Bets, US–China Talks

The South Korean won appreciated to approximately 1,383 per dollar on Tuesday, experiencing its second day of gains as the dollar softened in anticipation of the Federal Reserve’s policy meeting scheduled for September 16–17. It is widely anticipated that the meeting will result in a 25-basis-point interest rate cut. Investor sentiment was further buoyed by the prospect of easing tensions between the United States and China. Optimism was sparked after Treasury Secretary Scott Bessent announced that a framework for TikTok’s U.S. operations had been established during negotiations in Madrid, with formal confirmation expected following a call between Presidents Trump and Xi on Friday. Although unresolved matters such as tariffs, data algorithms, and intellectual property rights continue to pose challenges, the potential for reduced trade tensions has heightened risk appetite in Asian markets.