Uncertainty over Yoon's impeachment causes sharp rise in exchange rate... Surpasses 1438 won during trading (Update)

Political Instability Continues as USD-KRW Exchange Rate Surpasses 1438 Won

Due to prolonged uncertainty over the impeachment situation, on the 9th, both the KOSPI and KOSDAQ markets in South Korea fell sharply, hitting their lowest points of the year, while the won-dollar exchange rate rose to the 1,430 won level. Employees are working in the dealing room at the Euljiro Hana Bank headquarters in Seoul. Photo by Heo Young-han

Following the martial law incident involving President Yoon Suk-yeol, political uncertainty continues, causing the won-dollar exchange rate to maintain a sharp upward trend.

On the 9th, in the Seoul foreign exchange market, the won-dollar exchange rate was trading at 1,435.36 won as of 2:12 PM. The rate opened at 1,426.0 won, up 6.8 won from the previous trading day, and at one point during the session surpassed 1,438 won.

It is understood that the won is being sold amid expectations that the impeachment crisis of President Yoon Suk-yeol will be prolonged. The won-dollar exchange rate rose by 24.5 won just last week, showing the weakest performance among major global currencies. Last week, the won depreciated by 1.86% against the dollar, while the euro (0.03%), yen (0.10%), and pound (0.26%) strengthened.

Experts have assessed that instability in the foreign exchange market continues due to the martial law incident. Lee Joo-won, an economist at Daishin Securities, said, "The exchange rate is showing a sharp rise due to domestic political instability," adding, "Since political uncertainty has damaged investment sentiment toward Korea, the exchange rate will exhibit high volatility until the political issues are resolved."

There are also ongoing forecasts that volatility in the foreign exchange market will increase as long as political instability persists. Oh Jae-young, a researcher at KB Securities, stated, "In the past, major political events have lasted for 3 to 6 months, and with the weekend impeachment vote being rejected, concerns about a prolonged crisis have increased," adding, "With news that the opposition party plans to push for impeachment every Saturday, the exchange rate is likely to rise further."

This content was produced with the assistance of AI translation services.