SEOUL, December 26 (AJP) - The South Korean won fell to its weakest level against the U.S. dollar in nearly 16 years on Thursday, closing at 1,464.8 won per dollar. This marks an 8.4-won decline from the previous close of 1,456.4 won, reaching levels last seen during the 2009 global financial crisis.
The won’s sharp drop reflects a confluence of domestic political uncertainty and global financial pressures. President Yoon Suk Yeol’s declaration of martial law on Dec. 3 and his subsequent impeachment by the National Assembly have created significant instability in South Korea's political landscape.
Further compounding the issue are discussions surrounding additional impeachment efforts against Prime Minister Han Duck-soo, which have fueled concerns about governance and investor confidence.
Globally, the U.S. dollar has been surging, driven by the Federal Reserve’s recent decision to reduce its expected rate cuts for 2025 from four to two. This policy shift has strengthened the dollar against major currencies, adding downward pressure on the won.
During trading on Thursday, the won-dollar exchange rate initially opened at 1,455.2 won but climbed throughout the day, peaking at an intraday high of 1,466.0 won. This represents the highest intraday level since March 16, 2009, when the won hit 1,488.
Analysts warn that the combination of domestic and international factors could maintain downward pressure on the Korean currency.
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