USD/KRW: Korean Won falls as Trump wants South Korea to pay for more defense

USD/KRW is trading around 1,218, close to the highs for the currency pair and close to the lowest since 2016 for the Korean Won.

US President Donald Trump has said that talks between Washington and Seoul have begun to increase the payments that the Asian nation makes towards maintaining the American military presence in its country. The President has tweeted that "South Korea is a very wealthy nation that now feels an obligation to contribute to the military defense provided by the United States of America"

Relations with North Korea have deteriorated after a failed summit between leader Kim Jon-un and Trump in Vietnam, where the US president walked away without an agreement. Pyongyang has conducted missile tests which have worried Seoul.