Korean won to strengthen against dollar following Democrats' midterm sweep

The Korean won is anticipated to strengthen against the U.S. dollar following Democrats' landslide victories in both congressional chambers during the recent U.S. midterm elections. Political tensions in Washington and potential sell-offs in U.S. equities could negatively impact the dollar, according to experts who spoke on Wednesday.

Democratic control of Congress is likely to hinder President Donald Trump's economic agenda, which includes tax cuts and increased government spending, as well as provide lawmakers with more authority to examine his administration's policies.

Shin Se-don, an economics professor at Sookmyung Women's University, predicts that ongoing clashes between the White House and Congress could cause investor unease and erode faith in U.S. financial markets. He believes such a protracted standoff is inevitable, and President Trump's economic policy initiatives may face obstacles as Democrats intensify their opposition to the administration's policies.

This opposition could lead to a slowdown in economic growth throughout the broader U.S. economy, potentially affecting financial markets.