Impeachment Vote D-1... Won-Dollar Exchange Rate Stays in 1430s for 3 Days [Hankyung Forex Market Watch]

The won-dollar exchange rate slightly rose (won value fell) a day before the impeachment vote against President Yoon Suk-yeol. Amid ongoing political uncertainty, the value of the dollar also rose, keeping the exchange rate above 1430 won for three consecutive days.

On the 13th, the won-dollar exchange rate in the Seoul foreign exchange market (as of 3:30 PM) ended the weekly trading at 1433 won, up 1 won 10 jeon from the previous day. It moved in the 1430s for three consecutive days, following 1432 won 20 jeon on the 11th and 1431 won 90 jeon the previous day.

The exchange rate started at 1432 won, up 10 jeon from the previous day, and rose due to the expansion of uncertainty surrounding the domestic political situation. At one point during the day, it rose to the 1434 won range.

The dollar index also rose. Overnight, the dollar strengthened as the U.S. Producer Price Index (PPI) came out higher than market expectations. The European Central Bank and the Swiss National Bank lowering interest rates also contributed to the dollar's strength. The yuan-dollar exchange rate rose from the 7.27 yuan range to the 7.28 yuan range following the yuan devaluation announcement.

The foreign exchange authorities are emphasizing their commitment to market stabilization daily. Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, held an emergency macroeconomic and financial issues meeting and stated, "We will monitor the political situation closely this week and prepare, and if volatility becomes excessive, we will implement additional market stabilization measures in a timely manner."

Reporter Kang Jin-kyu josep@hankyung.com