The central bank stands ready to intervene in the forex market after the South Korean Won (USD/KRW) witnessed intense volatility on Tuesday when President Yoon Suk Yeol declared "emergency martial law", accusing the opposition Democratic Party of sympathising with communist North Korea.

USD/KRW jumped to its highest level since October 2022 at 1,444.05 in reaction to the political jitters before stabilizing to near 1,415 early Wednesday. The KRW markets breathed a sigh of relief after the parliament voted to reject his martial law declaration, and President Yoon Suk Yeol said that he would soon lift the military rule he had imposed overnight.

According to the latest update, South Korea's opposition party said it would initiate impeachment proceedings against President Yoon Suk Yeol unless he immediately resigned.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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