Won-dollar rate falls to 1,430 range after impeachment ruling

With the impeachment ruling against former President Yoon Suk Yeol easing some political uncertainty, the Korean won-dollar exchange rate fell to the 1,430 won range for the first time in a month. The domestic stock market experienced a roller-coaster ride, ultimately falling nearly 1% due to concerns over U.S. tariff hikes on semiconductors.

On Friday, the won-dollar exchange rate closed at 1,434.1 in the Seoul foreign exchange market, down 32.9 won from the previous day. Based on the 3:30 p.m. closing price, this marks the first time the exchange rate has dropped to the 1,430 won range since Feb. 27, when it closed at 1,433.1 won.

The ruling by the Constitutional Court to uphold the impeachment of former President Yoon contributed to the decline in the exchange rate, which had already been falling due to concerns over a potential U.S. economic slowdown and a weakening dollar. The U.S. dollar index, which measures the dollar’s value against six major currencies, dropped more than 2% from the previous day, falling to 101.26.

The KOSPI index opened at 2,450.49, down 1.46% from the previous day, as foreign investors began net selling due to fears of a U.S. tariff hike. However, the market turned upward ahead of the court’s ruling, even surpassing the 2,500 mark during the decision. After U.S. President Donald Trump announced that semiconductor products could soon be subject to tariffs, foreign selling intensified, and the market fell more than 1% following the ruling. In the final minutes of trading, losses were pared back, with the KOSPI closing at 2,465.42, down 0.86% from the previous day. Meanwhile, the KOSDAQ ended up 0.57% at 687.39 on the day.


이동훈 기자 dhlee@donga.com