SEOUL, December 06 (AJP) - The South Korean won tumbled on Friday, as deepening political turmoil sent shockwaves through the currency market. The won’s value against the U.S. dollar fell sharply, briefly threatening to breach the 1,430 won level.
The currency’s decline accelerated in the morning, fueled by concerns over the escalating political crisis. Calls for the impeachment of President Yoon Suk Yeol, following a declaration of a state of emergency, have heightened market anxiety.
However, the won recovered some ground in the afternoon, as suspected government intervention helped stabilize the currency.
Analysts attribute the won’s weakness to a combination of factors, including global economic uncertainty, rising interest rates, and domestic political instability. The rapid deterioration of the political situation has eroded investor confidence, leading to a flight to safety.
The South Korean government is closely monitoring the situation and is prepared to take additional measures to stabilize the currency market, officials said.
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