Trump Deal Threatens Won’s Advance as Dollar Demand to Surge

The South Korean won is under pressure as a $350 billion investment deal with the US is expected to drive huge dollar conversion demand in the coming years.

The currency had all the ingredients for a strong September as the Kospi hit a record high, foreign investors plowed in, and the dollar softened on the back of the Federal Reserve’s rate cut — yet the won has barely budged. Analysts at Citigroup Inc. and Societe Generale SA point to uncertainties around the US agreement as a key drag, with little known on the deal’s structure besides the headline figure.