The currency showed a modest recovery in early Tuesday trading. As of 1:30 p.m. on Tuesday, the won was trading at 1,470.60 per dollar, down 0.16 percent from Monday’s close but still 0.8 percent above the monthly average of 1,457.60.
“The won’s recent weakness is being driven primarily by domestic political instability and internal market volatility,” said Park Sang-hyun, an analyst at iM Securities. He cited the political crisis triggered by the martial law declaration by President Yoon Suk Yeol as a key factor eroding investor confidence.
“Beyond the legal uncertainty, there are growing concerns about potential divisions or unrest following the court’s decision, which is exacerbating the won’s depreciation,” Park added.
While some market analysts have pointed to external pressures, including the risk of U.S. tariffs on South Korean exports, many suggest these factors had already been priced in and do not fully explain the currency’s recent slide.
reporter
Kim Dong-young
davekim0807@ajupress.com
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