Korean won falls toward lowest level since 2009 as foreign investors sell South Korean stocks

Glonghui July 1 — As the US dollar strengthens and overseas investors sell off local stocks, the Korean won is approaching its lowest level since the global financial crisis, leading declines among Asian currencies. The won fell as much as 0.6% against the dollar to 1,559.10, after dropping to a low of 1,562.20 in March 2009 last month. On Wednesday, overseas investors made a net sale of 1.46 trillion won (938 million US dollars) worth of Kospi Index stocks, marking the eighth consecutive trading day of withdrawals. “The upward momentum of the US dollar is so strong that it’s not surprising for the Korean won to hit new lows,” said Korea Investment & Securities Co. economist Moon Dawoon. “If the won really falls to a new low, the next technical level is hard to determine. From a qualitative perspective, the downside for the won against the dollar should be seen around 1,600.”