Yoon Impeachment Verdict Date Confirmed... KRW-USD Exchange Rate Fluctuates by 10 KRW [Hankyung Forex Market Watch]

The KRW-USD exchange rate fell (KRW value rose) due to expectations of resolving domestic political uncertainty following the confirmation of the impeachment verdict date. However, it showed extreme volatility, fluctuating by nearly 10 KRW during the day.

On the 1st, in the Seoul foreign exchange market, the KRW-USD exchange rate (as of 3:30 PM) ended weekly trading at 1,471.90 KRW, down 1 KRW from the previous day. The exchange rate started at 1,473 KRW, up 10 jeon, and increased its upward trend in the morning. It was identified that the trade report from the Trump administration in the U.S. triggered caution over mutual tariffs. The intraday high was recorded at 1,476.70 KRW.

However, after the Constitutional Court announced in the morning that it would hold the impeachment trial for President Yoon Suk-yeol on the morning of the 4th, the exchange rate dropped significantly. Around 11:50 AM, it fell to 1,466.90 KRW. The intraday fluctuation reached 9.80 KRW. It is understood that expectations of significant resolution of political uncertainty through the impeachment verdict led to exchange rate stabilization.

However, in the afternoon, the exchange rate rose again to finish trading in the 1,470 KRW range due to overlapping uncertainties about the impeachment verdict outcome, the strong U.S. dollar, and mutual tariff uncertainties. It is the first time in 16 years since March 2009 during the global financial crisis that the exchange rate recorded the 1,470 KRW range for two consecutive days.

At the same time, the KRW-JPY fiscal exchange rate was traded at 982.25 KRW per 100 JPY. It fell by 7.74 KRW compared to the previous day's 3:30 PM standard price (989.69 KRW). The JPY-USD exchange rate recorded 149.84 JPY per dollar, down 0.17 JPY from the previous day.

Reporter Kang Jin-kyu josep@hankyung.com