The South Korean won weakened to its lowest level in 16 years after the dollar strengthened, dragging down the Thai baht and other Asian currencies

The South Korean won weakened to its lowest level in 16 years, following a stronger US dollar and continued selling of South Korean stocks by foreign investors. The Thai baht, the rupiah, and the Philippine peso also depreciated.

On July 1, 2569 at 09.52:XNUMX p.m., Bloomberg News reported that The South Korean won weakened to near its lowest level in more than 16 years during trading on Wednesday (July 2). Asian currencies weakened as the US dollar continued to strengthen and foreign investors aggressively sold off South Korean stocks.

The won weakened by as much as 0.6%, reaching 1,559.10 won per dollar. After weakening to 1,562.20 won per dollar last month, a level not seen since March 2552 during the global financial crisis.

The data indicates that Foreign investors were net sellers of stocks in the Kospi index, selling 1.46 trillion won (approximately US$938 million) on Wednesday. If the market closes with such net selling, it will mark eight consecutive trading days.

Moon Da-woon, an economist from Korea Investment & Securities. said The strength of the dollar makes it unsurprising for the won to weaken and reach a new low. It is also noted that if the won breaks through that level, assessing technical support will be difficult, and there is a possibility of further depreciation towards 1,600 won per dollar.

side South Korean stocks, as measured by the Kospi index, fell by as much as 3.9%. Shares of Samsung Electronics and SK Hynix both fell by at least 3%.

The selling pressure on Wednesday continued from the previous quarter, when foreign investors sold a record total of $58,000 billion worth of South Korean stocks. This was due to several foreign funds having reached record highs in their investments in Samsung and SK Hynix, coupled with a shift in investment direction towards artificial intelligence (AI) stocks.

Besides the won, other Asian currencies also faced pressure, with the Indonesian rupiah, the Philippine peso, and the Thai baht weakening. The Japanese yen weakened further by 0.1% to 162.70 yen per dollar, after falling below 162 yen this week, its weakest level since 2529.

Meanwhile, the Bloomberg Dollar Spot Index, which measures the dollar’s movement against a basket of major currencies, rose 0.2%, reflecting a strengthening dollar amid expectations that the Federal Reserve (Fed) will continue its tight monetary policy.

refer : www.bloomberg.com

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