April Sees Sharpest KRW–USD Swings Since Nov 2022

– What happened? The Bank of Korea reports that US tariffs in April triggered violent FX moves, with the won averaging ₩9.7 of daily fluctuation (0.67%).

– March vs. April: March’s daily swing averaged only ₩4.3 (0.29%)—meaning April volatility more than doubled month-over-month.

– Historical Context: The last time we saw wilder moves was November 2022, when Fed-pause expectations sent swings up to ₩12.3 per day.

Why It Matters:

Corporates & importers face bigger FX risk and hedging costs.

Exporters may benefit from a weaker won but must navigate unpredictable rates.

Policy Watch: Future US trade measures and Fed guidance will be key volatility drivers.

Takeaway: Businesses and investors should review their FX hedging strategies now to cushion against continued tariff-driven turbulence.