As concerns over political uncertainty, including the impeachment crisis, and economic slowdown persisted, the won-dollar exchange rate closed at around 1450 won on the 20th.
According to the Seoul foreign exchange market, the weekly transaction closing price of the won-dollar exchange rate was 1,458.9 won, up 5.5 won from the previous trading day, based on the 3:30 p.m. reference. The exchange rate has maintained the 1450 won level for three consecutive trading days since the 18th (1452.9 won).
On that day, the exchange rate opened at 1,458 won and fluctuated in the mid-1450s before rising to 1,461.4 won around 10:46 a.m. This marked the first time the intraday exchange rate had exceeded 1,460 won since the 11th (1,460.5 won, high price basis).
Concerns over economic slowdown due to political instability and Donald Trump's tariff policy have lowered the value of the won. Political uncertainty has increased as a verdict on the impeachment of President Yoon Suk-yeol has been delayed, and U.S. President Donald Trump has hinted at announcing mutual tariff rates on the 2nd of next month, intensifying external risks.
The results of the Federal Open Market Committee (FOMC), which were previously viewed as accommodative, did not prevent the rise in exchange rates. The FOMC maintained the base interest rate at the existing range of 4.25% to 4.50% per annum on the 19th (local time); however, it kept its forecast for interest rate cuts twice this year despite concerns about economic slowdown. Consequently, the market interpreted the results of this meeting as dovish.
However, foreign investors showed buying interest in the domestic stock market, limiting the increase in exchange rates. On that day, foreigners purchased 55.15 billion won in the Korea Composite Stock Price Index (KOSPI). As a result, the KOSPI closed at 2,637.1, up slightly (0.32%) from the previous day.
The won-yen exchange rate was recorded at 982.21 won per 100 yen, and the won-yuan exchange rate was recorded at 201.53 won. Notably, the won-yuan exchange rate reached its highest level since the direct transaction market was established in December 2014.
Park Sang-hyun, a researcher at iM Securities, analyzed, "The exchange rate seems to have risen due to increased concerns about the credit of domestic corporations following Homeplus's corporate rehabilitation application, as well as continued political instability due to the delay in impeachment."