South Korean Won Weakens Against Dollar as Foreign Investors Sell Stocks
Quick Look
- The South Korean won weakened against the U.S. dollar on Monday, closing at 1,429.8 won per dollar, as foreign investors became net sellers of local stocks, offloading 2.8 trillion won worth.
- This occurred despite recent foreign exchange interventions by the U.S. and Japan.
AI-generated summary
Why It Matters
The South Korean won weakened against the U.S. dollar on Monday, despite recent foreign exchange market interventions by the United States and Japan that helped the Japanese yen jump last week.
The South Korean won weakened against the U.S. dollar Monday, as overseas investors turned net sellers of local stocks.
The won was quoted at 1,429.8 won per dollar at 3:30 p.m., down 5.8 won from the close of onshore trading last Friday.
The won opened at 1,437.5 won per dollar and rose to as high as 1,425 won, marking the strongest level since Feb. 26, after both the United States and Japan confirmed they had intervened in foreign exchange markets, helping the Japanese yen jump last week.
The won's slide also came as oil prices declined amid fresh optimism over prospects of talks between the U.S. and Iran.
Foreigners sold a net 2.8 trillion won (US$1.9 billion) worth of local stocks during the latest trading session, with the benchmark Korea Composite Stock Price Index dipping 5.12 percent to close at 6,257.45.
Open Questions
- Will the won continue to weaken?
- What is the outcome of US-Iran talks?
- Will foreign investors return to local stocks?
