South Korean Won Weakens Further Against U.S. Dollar
Quick Look
- The South Korean won weakened further against the U.S. dollar on Thursday, trading at 1,555.8 won per dollar.
- This depreciation is attributed to consistent selling of local stocks by foreign investors, who have been net sellers for ten consecutive sessions.
- The government stated the exchange rate is 'misaligned' and is prepared to intervene if necessary.
AI-generated summary
Why It Matters
The South Korean won has been weakening against the U.S. dollar due to consistent selling of local stocks by foreign investors. The government has indicated readiness to stabilize the foreign exchange market.
SEOUL, July 2 (Yonhap) -- The South Korean won weakened further against the U.S. dollar Thursday, due to the steady selling of local stocks by foreign investors.
The won was quoted at 1,555.8 won per dollar at 3:30 p.m., down 0.9 won from the previous session, with the exchange rate remaining at the 1,550-level for the second consecutive day.
The won opened at 1,552.3 won per dollar, up 2.6 won from the previous session, after remarks by U.S. Federal Reserve Chair Kevin Warsh that inflation expectations had moderated.
On Wednesday, the won hit its weakest level since March 5, 2009, slumping to 1,554.9 won to the dollar at the close of onshore trading.
Foreign investors sold a net 4.3 trillion won (US$2.7 billion) worth of local stocks on Thursday, remaining net sellers of local stocks for the 10th consecutive trading session.
Earlier in the day, Vice Finance Minister Huh Chang said the government is ready to take measures to stabilize the foreign exchange market if necessary.
Huh said the exchange rate is "misaligned" given the nation's economic fundamentals.
Open Questions
- Will the government intervene in the market?
- How long will foreign investors continue selling stocks?
