The Korean won drifted lower against the U.S. dollar in early European deals on Friday, after the U.S. President Donald Trump remarked that South Korean trade deal is "unacceptable'' and warned of a major rift with North Korea.

In an interview, Trump said a major conflict with North Korea was possible over its nuclear and ballistic missile programs, but he would prefer a diplomatic outcome to the dispute.

Meanwhile, South Korea said it would adopt a "wait and see" stance, after Trump told Reuters he would either renegotiate or terminate a "horrible" trade deal with the country.

The Korean won that ended Thursday's trading at 1131.50 against the greenback dropped to a 4-day low of 1137.80. The won is likely to find support around the 1180.00 zone.

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