Korean Won Hits Lowest Point in Almost 16 Years
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Seoul, Dec 27 (NationPress) The South Korean currency has dipped further against the US dollar, hitting its lowest level in nearly 16 years on Friday, as a result of a deepening political crisis and persistent growth concerns.
The Korean won started the day at 1,467.5 won per dollar, down by 2.7 won from the previous trading session, and further declined to 1,480.2 won around 10:58 a.m.
This represents the first instance of the won trading below the 1,480 won mark during intraday trading since March 16, 2009, when it was quoted at 1,488 won following the global financial crisis, according to Yonhap news agency.
The political turmoil in South Korea has intensified, with the National Assembly preparing to vote on a motion to impeach acting President Han Duck-soo due to his refusal to appoint Constitutional Court justices necessary for adjudicating President Yoon Suk Yeol's impeachment trial.
Previously, the parliament had voted to impeach Yoon due to his controversial, albeit brief, declaration of martial law on December 3.
Since the martial law incident, the currency has consistently remained above the critical level of 1,400 won, and Bank of Korea Governor Rhee Chang-yong has indicated that the currency is expected to stay around this level for the foreseeable future.
The won's decline also corresponds with the ongoing strengthening of the U.S. dollar, as worries have escalated regarding the repercussions of U.S. President-elect Donald Trump's new tariff policies on South Korean industries and the broader economy.
The U.S. Federal Reserve's announcement to reduce its anticipated number of rate cuts in 2025 from four to two has further pressured the won and several other Asian currencies.
In response, financial authorities have committed to providing unlimited liquidity and have pledged to utilize all available measures to stabilize the market.
