The South Korean won weakened to around 1,370 per dollar after reversing gains from a sharp rebound, as rising U.S. Treasury yields strengthened the dollar. The 10-year Treasury yield climbed to its highest level since July 2007, while stronger-than-expected U.S. economic data increased inflation concerns and reinforced expectations of further monetary tightening. The probability of another 25-basis-point Federal Reserve rate increase in October rose to around 70% from 55%, bringing the dollar close to its strongest level in almost two months. Oil prices also recovered as renewed Middle East risks lifted Brent crude above $103 a barrel, raising concerns about supply disruptions and higher import costs for South Korea. Separately, the United States and China reportedly agreed to extend their trade truce by two months, allowing more time to negotiate a broader agreement and reducing near-term trade uncertainty for Korea’s major trading partners.