The Korean won weakens sharply against the US dollar on Monday, reaching its weakest level in about 17 years amid foreign selling of local shares and renewed concerns about conflict in the Middle East. In afternoon trading, the won is quoted at 1,545.2 won per dollar at 3:30 p.m., down 13.2 won from the previous session, after touching 1,539.7 won earlier in the day. The currency opens at 1,536.5 won per dollar. Reports that the United States and Iran exchange strikes after an Iranian projectile hit a cargo ship in the Strait of Hormuz last week initially add pressure. Later, the won recoups some losses on reports that Washington and Tehran may renew talks. Despite this, analysts say ongoing foreign sell-offs of Korean stocks are likely to keep the won under pressure. Foreign investors are net sellers of local equities, with one source citing net sales of 7.7 trillion won (about $4.9 billion) on the day and another citing 1.3 trillion won earlier in the morning. The local benchmark Korea Composite Stock Price Index falls more than 2% to 8,253.86 points as of 9:52 a.m. The dollar stays supported as investors price in potential US Federal Reserve rate hikes.
Korean won hits 17-year low as foreign stock selling and US-Iran tensions weigh
The Korean won weakens sharply against the US dollar on Monday, reaching its weakest level in about 17 years amid foreign selling of local shares and renewed concerns about conflict in the Middle East...
- The won falls to its weakest level in about 17 years against the US dollar, at 1,545.2 won per dollar by 3:30 p.m.
- The won opens at 1,536.5 won per dollar and trades as low as 1,539.7 won during morning trading.
- Foreign investors are net sellers of South Korean stocks, with heavy selling reported on Monday.
- Concerns about renewed US-Iran conflict following activity near the Strait of Hormuz contribute to market pressure.
- The Korea Composite Stock Price Index drops more than 2% in the morning session.
The Korean won sharply fell to its weakest level in 17 years against the U.S. dollar Monday, as foreign investors continued to sell local stocks amid renewed tensions in the Middle East. The won was quoted at 1,545.2 won per dollar at 3:30 p.m., down 13.2 won from the previous session, marking the weakest level since March 9, 2009. The won opened at 1,536.5 won per dollar, down 4.5 won from the previous session, after reports that the United States and Iran traded strikes since an Iranian projectile hit a cargo ship in the Strait of Hormuz. At one point during morning trading, the won fell to as low as 1,539.7 won per dollar, but recouped some losses amid reports that Washington and Teheran would renew talks. However, the won had been under pressure as foreign investors dumped local stocks. Also, the U.S. dollar has remained strong as investors bet on a rate-hike by the U.S. Federal Reserve. On Monday, foreign investors sold a net 7.7 trillion won ($4.9 billion) worth of local stocks. Foreign investors remained net sellers of local stocks for the seventh consecutive trading session. The benc
2 hours agoThe Korean won weakened against the U.S. dollar Monday due to fresh concerns of conflict between the United States and Iran in the Middle East. The won opened at 1,536.5 won per dollar, down 4.5 won from the previous session, after reports that the U.S. and Iran traded strikes since an Iranian projectile hit a cargo ship in the Strait of Hormuz last week. At one point during morning trading, the won fell to as low as 1,539.7 won per dollar, but recouped some losses amid reports that Washington and Teheran would renew talks. However, foreign sell-offs of local stocks are likely to further weaken the Korean currency, some analysts said. The benchmark Korea Composite Stock Price Index slumped more than two percent to 8,253.86 points as of 9:52 a.m. Foreign investors sold a net 1.3 trillion won worth of local stocks at one point in the morning.
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