FX.co ★ South Korean Won Gains After Lee Jae-myung Wins Presidency

The South Korean won edged closer to 1,370 per dollar on Wednesday, reaching its highest point in eight months following the lessening of political uncertainty. This development came after liberal candidate Lee Jae-myung clinched the presidency with 49.4% of the votes. The advent of Lee's administration has injected a sense of short-term stability, particularly after the impeachment of former President Yoon Suk Yeol, whose declaration of Martial Law had previously shaken the markets. Despite the won's modest recovery, the economic outlook remains precarious, with South Korea's manufacturing sector grappling with weakened global demand and exports hampered by U.S. tariffs. In response, the Bank of Korea has reduced its benchmark interest rate for the fourth time, bringing it down to 2.5%, in an effort to provide some flexibility against the economic impact of U.S. tariffs. Inflation has also decelerated to 1.9%. Investors are now keenly observing how President Lee will manage relations with both the U.S. and China amidst the prevailing global trade tensions.