Although some political uncertainty was removed by the impeachment bill of President Yoon Seok-youl being passed, the won-dollar exchange rate rose further.
On the afternoon of the 16th, in the Seoul foreign exchange market, the won-dollar exchange rate ended at 1,435.0 won, up 2.0 won from the previous day's transaction (1,433 won). The rate initially fell 2 won from the previous day's transaction, starting at 1,431 won, dipping to as low as 1,429 won, but then reached 1,438.3 won around 11 a.m.
It was assessed that the uncertainty caused by the failure to pass the first impeachment bill after President Yoon Seok-youl's "martial law" situation negatively impacted the exchange rate. Despite predictions that the passing of the second impeachment bill would stabilize the rate, it rose further.
In the market, there is a perspective that uncertainty remains until the impeachment judgment is concluded, and external factors are not acting favorably on the exchange rate. On the 17th to 18th (local time), the Federal Reserve (Fed) in the United States will decide this year's final base interest rate during the Federal Open Market Committee (FOMC) meeting.
While it is highly likely that the base interest rate will be lowered in this meeting, the dollar continues to strengthen amid the possibility that the Fed may reveal a "hawkish" (preference for monetary tightening) stance for interest rate forecasts for next year and the year after. The second-term Trump policy uncertainty still supports strong dollar factors.
In addition to the U.S. FOMC this week, major countries such as the Bank of Japan (BOJ) and the Bank of England (BOE) are also scheduled to make currency policy decisions, increasing caution.