A screen at Hana Bank's dealing room shows KOSPI index and exchange rate between Korean won and U.S. dollar, Dec. 20. Yonhap

The Korean currency flirted with the lowest level in more than 15 years Friday after the Federal Reserve hinted at a slower pace of rate cuts next year and Korea is struggling with political turmoil.

The won opened at 1,450.0 won Friday, up 1.9 won from the previous session. Thursday's level marked the lowest since March 2009.

During intraday trading, the currency had tumbled to as low as 1,453.2 won Thursday.

The weakness came after the Fed scaled back the number of rate cuts it anticipates in 2025 to two from the initial four, which hammered Asian currencies.

The local currency has also come under pressure from the domestic political situation, where the National Assembly voted to impeach President Yoon Suk Yeol last week for his short-lived imposition of martial law on Dec. 3.

The country is also facing multiple economic headwinds, including tariff threats from the new Donald Trump administration and weak growth momentum.

In the wake of the won's weakness, the Bank of Korea and the National Pension Service agreed Thursday to expand the size and duration of their currency swap deal.

The deal will be raised to $65 billion from the current $50 billion, and it was extended by one year to the end of 2025, they said earlier.

Finance Minister Choi Sang-mok has pledged to implement all measures available to settle the foreign exchange and financial markets, while guarding against excessive volatility given the country's strong economic fundamentals and ample means of handling the difficulties. (Yonhap)

A foreign currency exchange vendor in touristic district of Myeongdong, Seoul, shows exchange rates on a screen, Dec. 20. Korea Times photo by Choi Won-suk