Reported about 5 hours ago
South Korea's efforts to negotiate a US trade deal like Japan's have faltered due to concerns over the impact of a $350 billion investment fund on its currency. While Japan agreed to a swift financial transfer arrangement, South Korean officials are worried about the potential dollar demand overwhelming their weak currency, leading to fears of significant depreciation. With a smaller economy, South Korea faces additional challenges, prompting discussions of seeking a foreign exchange swap line with the US to mitigate risks.
Source: YAHOO