South Korean Won Falls Further on Tech Rout
The South Korean won traded around 1,347 per dollar, extending losses as the global semiconductor sell-off intensified risk aversion and prompted investors to retreat from the region's technology-heavy markets. Concerns over elevated AI valuations, high borrowing costs and the financing needs of massive AI infrastructure investments triggered a prolonged decline in US chip stocks, spilling over into South Korean equities and weighing on the currency. Foreign investors sold around $1.8 billion in KOSPI shares on Thursday morning alone, taking October outflows above $10 billion and increasing demand for dollars as capital exited local markets. Additionally, hotter-than-expected US inflation, with annual CPI reaching 3.7% in September against a 3.6% forecast, reinforced concerns over further Federal Reserve tightening, adding to uncertainty across financial markets. However, a pullback in US Treasury yields and oil prices help limit the won’s losses.
The South Korean won traded around 1,347 per dollar, extending losses as the global semiconductor sell-off intensified risk aversion and prompted investors to retreat from the region's technology-heavy markets. Concerns over elevated AI valuations, high borrowing costs and the financing needs of massive AI infrastructure investments triggered a prolonged decline in US chip stocks, spilling over into South Korean equities and weighing on the currency. 8 billion in KOSPI shares on Thursday morning alone, taking October outflows above $10 billion and increasing demand for dollars as capital exited local markets.
6% forecast, reinforced concerns over further Federal Reserve tightening, adding to uncertainty across financial markets. However, a pullback in US Treasury yields and oil prices help limit the won’s losses.