The South Korean won recorded a sharp decline today, Thursday, as trading opened at 1,453 won against the dollar, recording the lowest level in 15 years.
The South Korean currency fell by 17.5 won today compared to the previous session, recording its lowest level since March 2009, according to what Yonhap News Agency reported.
This sharp decline comes after the US Federal Reserve yesterday reduced interest rates by 25 basis points, now ranging between 4.25% and 4.50%.
Earlier today, South Korean Finance Minister Choi Sang-mok expected increased volatility in the country’s financial and foreign exchange markets in the short term.
The value of the Korean currency against the dollar declined significantly after President Yoon Seok-yeol declared short-term martial law on December 3.
On Thursday, South Korea’s acting president, Han Duk-soo, said he would veto a group of controversial bills sponsored by the main opposition party that controls parliament, deepening the political conflict in the wake of the parliament’s impeachment of President Yoon Suk-yul.
Han assumed the role of acting president after Parliament voted to impeach Yoon last Saturday.
The Constitutional Court is scheduled to determine whether it will formally decide to dismiss Yoon or return him to his position.
Four of the six bills that Han intends to veto are aimed at providing greater state financial assistance programs for the country’s agricultural and fisheries industries.
The major bills also include the Grain Management Law, and Han said the agricultural bills may distort the market system and lead to an oversupply of rice, causing a “huge financial burden” on the government.
