WNAM REPORT: The South Korean currency dipped further against the U.S. dollar to its lowest level in nearly 16 years Friday amid a deepening political crisis and growth woes.
The Korean won opened at 1,467.5 won per dollar, down 2.7 won from the previous session, and fell further to 1,480.2 won at around 10:58 a.m.
It marked the first time that the won fell below the 1,480 won level in terms of intraday trading figures since March 16, 2009, when the reading was quoted at 1,488 won in the aftermath of the global financial crisis.
A political crisis has intensified in South Korea as the National Assembly was set to vote on a motion to impeach acting President Han Duck-soo over his refusal to appoint Constitutional Court justices that will adjudicate President Yoon Suk Yeol’s impeachment trial.
Earlier, the parliament voted to impeach Yoon for his shocking, albeit short-lived, imposition of martial law on Dec. 3.
Following the martial law fiasco, the currency has been well above the closely watched level of 1,400 won, and Bank of Korea Gov. Rhee Chang-yong has said the currency is forecast to stay around that level for the time being.
The won’s weakness also came in line with the continued strengthening of the U.S. dollar, as concerns have deepened over the impact of U.S. President-elect Donald Trump’s new tariff policy on South Korean industries and the broader economy.
The U.S. Federal Reserve’s indication of scaling back the number of rate cuts it anticipated in 2025 to two from the initial four has hammered the won and other Asian currencies.
Financial authorities have vowed to inject unlimited liquidity and implement all measures available to settle the market.
