By Investing.com– Asian currencies drifted lower on Wednesday with the South Korean won at a two-year low after President Yoon Suk-Yeol’s failed attempt to impose martial law, while the Australian dollar fell to a four-month low on weak gross domestic product data.
Market participants were also on edge before an address by U.S. Federal Reserve Chair Jerome Powell later in the day, which is expected to provide more clarity on interest rates. Regional currencies were pressured by a spike in the dollar this week, amid increasing uncertainty over the long-term outlook for interest rates.
The US Dollar Index edged 0.1% higher, rising for the third straight session, and the US Dollar Index Futures also ticked higher in Asia hours.
S.Korean won at 2-year low amid political turmoil
The South Korean won’s USD/KRW pair rose 0.1% to 1416.15 won, after surging as high as 1,444.05 won in overnight trade- its highest level since November 2022.
South Korean President Yoon Suk-Yeol declared martial law on Tuesday in an effort to counter “anti-state forces” among his political opponents. However, the move faced immediate backlash, including parliamentary rejection and public protests, leading him to revoke the measure within hours.
