Following the emergency martial law situation, the impeachment political crisis deepened, causing the won-dollar exchange rate to soar, threatening the 1,430 won level during the session.
On the 6th, in the Seoul foreign exchange market, the won-dollar exchange rate was trading in the high 1,410 won range as of 11:35 a.m. The rate opened at 1,416 won, up 0.9 won from the previous trading day's closing price (3:30 p.m.), and climbed during the session to reach around 1,429 won by 11 a.m. It then fell back to the low 1,420 won range following what is presumed to be intervention by authorities.
This is because political instability, intensified by the impeachment crisis related to the emergency martial law situation, is fueling the won's weakness. On the same morning, Han Dong-hoon, leader of the People Power Party, said at an emergency Supreme Council meeting held at the National Assembly, "I judge that a prompt suspension of President Yoon Seok-yeol's duties is necessary to protect the Republic of Korea and its people."
Moreover, concerns have grown with the mention of a possible second martial law.
The market is on alert ahead of the U.S. employment data release in November, as it could influence the interest rate decision at the Federal Open Market Committee (FOMC) meeting scheduled for the 17th-18th.
The Dollar Index (DXY), which indicates the value of the dollar against the currencies of six major countries, is trading slightly higher in the high 105 range compared to the previous trading day.
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