South Korea President Yoon declares martial law, USD/KRW jumps to two-year high

Eren Sengezer FXStreet

South Korean President Yoon Suk Yeo announced on Tuesday that they have declared martial law to clear out pro-North Korea elements, per Reuters.

Yoon said the government administration has been paralyzed because of the opposition party's conducts and added that they will rebuild a free and democratic country through martial law.

Market reaction

The USD/KRW pair surged higher with the immediate reaction to this development and was last seen trading at its highest level in two years at 1,422.20, rising 1.4% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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