A recent won-dollar exchange rate trend graphic is displayed at a Hana Bank dealing room in central Seoul. Graphic by Asia Today and translated by UPI
June 7 (Asia Today) -- The South Korean won has weakened sharply against the U.S. dollar, approaching levels last seen during the global financial crisis, as foreign investors sell Korean stocks and uncertainty grows over the prolonged Middle East war.
According to the Seoul foreign exchange market, the won-dollar exchange rate rose to 1,549.1 won per dollar at about 10:27 a.m. Thursday before ending daytime trading at 1,539.1 won. In overnight trading early Friday, the rate reached 1,561.5 won per dollar.
That was the highest intraday level in 17 years and three months, since March 2009 during the global financial crisis, when the rate reached 1,597.0 won per dollar. Korean market reports also showed the won briefly passing the 1,560 level in overnight trading.
Several domestic and external factors are driving the exchange rate higher. Analysts point first to continued foreign selling in the Kospi, which has weakened the won. Foreign investors have been net sellers of Korean stocks for 20 consecutive trading days, with their total sales this year approaching 120 trillion won (US $77 billion.)
