South Korean won was sharply pressured against the US dollar on Friday. The currency fell to its lowest level since 2009 after foreign investors continued to sell shares in the South Korean market.
Quoted from a Yonhap report, Friday, June 5, the weakening of the won occurred amid fading hopes for a diplomatic settlement of the war in the Middle East. The uncertainty made investors choose the US dollar, a currency that is usually hunted when the market is restless.
At 15:30 local time, the won was at 1,539.1 won per US dollar. The value weakened 9.4 won compared to the previous session and became the weakest position since March 9, 2009.
In fact, the won opened stronger at 1,529 won per US dollar, up 0.7 won from the previous close. However, the strengthening did not last long. Pressure emerged after foreign investors sold South Korean stocks again.
In Friday's trade, the won even weakened to 1,549.1 won per US dollar. That was the lowest intraday level since March 10, 2009.
This weakening occurred even though South Korean authorities have stated that they are ready to take steps to dampen excessive turbulence in the foreign exchange market.
The biggest pressure came from the stock market. On Friday, foreign investors recorded net sales of South Korean stocks worth 3.5 trillion won, or about 2.3 billion US dollars.
Yonhap's report said foreign investors have been net sellers of South Korean stocks for 20 consecutive trading days.
The Korea Composite Stock Price Index or KOSPI benchmark index fell 5.54 percent and closed at 8,160.59, according to data in the Yonhap report.
Economist Moon Jeong-hee of KB Kookmin Bank said the weakening of the won was triggered by high demand for the US dollar. The demand increased as foreign investors continued to sell their shares in South Korea.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
