KRW vs USD: The South Korean Won Faces Tumultuous Times
KRW Sees Sharp Decline Against USD Amidst Political Turmoil
On December 3, South Korea's won (KRW) descended to its lowest exchange rate against the U.S. dollar (USD) as a result of a sudden declaration of emergency martial law by President Yoon Suk Yeol. Following this political upheaval, the exchange rate soared to over 1,428 won per dollar. The situation reflects the significant economic uncertainty that can arise from political instability.
The Immediate Impact on Currency
The immediate aftermath saw the won plunge. The peak exchange rate at 1,428 KRW per USD signifies a stark response to the unrest, with a slight recovery to 1,415 KRW showcasing ongoing volatility. This case illustrates the sensitivity of currencies to political events.
Underlying Factors for Won's Weakness
However, the problems faced by the won are not solely due to the December 3 crisis. The currency have been steadily losing strength against the dollar since early November, driven in part by the rise in dollar indices following the U.S. election. Currency trends reveal a broader context of global economic shifts impacting the won's performance, as similarly observed against other major currencies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.