South Korea’s won currency fell sharply against the dollar after President Yeon Seok-yul announced the implementation of martial law.
The exchange rate of the Korean won fell to 1443.40 following the announcement of martial law against the dollar from 1399.48 recorded during today’s trading, and it reached 1432.701 against the dollar, at the time of writing this report.
Yoon declared martial law in an unannounced speech broadcast late at night, accusing the opposition of seizing control of Parliament and paralyzing the government by carrying out “anti-state activities.”
Lowest since 2022
Thus, the won recorded its lowest level since October 26, 2022, when the local currency fell to the level of 1432.4 won against the dollar during the trading session.
In internal trading today, the local currency was priced at 1,402.9 won against the dollar at 3:30 pm (local time), down 1.6 won from the previous session.
Bloomberg quoted the head of global foreign exchange at Jefferies, Brad Bechtel, as saying: “The South Korean leadership has used martial law in the past during times of major political unrest or power transitions, but it is worrisome nonetheless.”
Bechtel expects the won to remain volatile for the time being. “A lot will depend on the reaction of foreign investors in local stock markets. If they start selling aggressively, we may reach (an exchange rate of) 1,450 (to the dollar),” he said.
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