S. Korean won slightly weakens after Democrats retake U.S. Congress in midterm elections

The Korean won is anticipated to strengthen against the U.S. dollar following Democrats' decisive victory in both chambers of Congress during the recent U.S. midterm elections, according to experts. Political tensions in Washington and a possible sell-off in U.S. equities may put downward pressure on the dollar, suggest analysts.

Democrats' control over Congress is likely to obstruct President Donald Trump's economic agenda, including tax cuts and increased government spending, while empowering legislators to scrutinize the administration's policies. The ongoing potential conflict between the White House and Congress could unsettled investors and erode trust in U.S. financial markets, stated Shin Se-don, an economics professor at Sookmyung Women's University.

Shin predicts that a fierce confrontation between the Congress and the Trump administration is inevitable. Trump's economic policy initiatives may face obstacles as Democrats intensify their opposition to the administration's policies, which could hamper growth in the wider U.S. economy. The resulting political repercussions could have broader implications for financial markets.