S. Korean won sharply weakens against U.S. dollar
Won drops 14 won to close at 1,337.7 per dollar amid foreign dollar futures purchases
Quick Look
The South Korean won sharply weakened against the U.S. dollar, dropping 14 won to 1,337.7 per dollar as foreigners purchased dollar futures and covered short positions.
AI-generated summary
Why It Matters
Traders are monitoring the U.S. Federal Reserve's upcoming policy rate decision and potential hints at rate hikes.
SEOUL, Oct. 28 (Yonhap) -- The South Korean won sharply weakened against the U.S. dollar Wednesday, as foreigners appeared to have purchased dollar futures and covered dollar-short positions.
The won was quoted at 1,337.7 won per dollar at 3:30 p.m., down 14 won from the close of the previous stock trading session.
At one point in afternoon trading, the won dropped to a low of 1,342.3 won per dollar.
Although the U.S. Federal Reserve is expected to leave its key policy rate unchanged this week, traders have been monitoring whether the U.S. central bank will hint at a rate hike later this year.
Foreign investors purchased a net 815.8 billion won (US$609 million) worth of local shares during the latest regular stock trading session, with the benchmark Korea Composite Stock Price Index jumping 6.63 percent to close at 6,012.44.
What to Watch
AI outlook — possibilities, not facts
U.S. Federal Reserve to leave key policy rate unchanged
Likely · Within days
Open Questions
- Will the U.S. Federal Reserve signal a rate hike later this year?
- How long will foreign investors continue net buying of local shares?
