South Korean Won Extends Losses on Capital Outflows
The South Korean won traded around 1,343 per dollar, extending losses as foreign capital outflows and concerns over AI investments weighed on local markets. Foreign investors withdrew a net $19.97 billion from South Korean stocks and bonds in September, marking an eighth consecutive month of net outflows. The selling persisted into October, with foreign investors offloading KRW 3.6 trillion in local shares on Thursday amid heavy losses in Samsung Electronics and SK hynix, driven by concerns over AI valuations and Chinese competition in memory chips. Additionally, US producer prices rose 1.3% month-on-month in September, the largest increase since March 2022, while annual inflation accelerated to 6.3%, fueling concerns over persistent price pressures and potential Federal Reserve tightening. Meanwhile, a retreat in US Treasury yields and the dollar offered some external relief.
The South Korean won traded around 1,343 per dollar, extending losses as foreign capital outflows and concerns over AI investments weighed on local markets. Foreign investors withdrew a net $19.97 billion from South Korean stocks and bonds in September, marking an eighth consecutive month of net outflows. The selling persisted into October, with foreign investors offloading KRW 3.6 trillion in local shares on Thursday amid heavy losses in Samsung Electronics and SK hynix, driven by concerns over AI valuations and Chinese competition in memory chips.
Additionally, US producer prices rose 1.3% month-on-month in September, the largest increase since March 2022, while annual inflation accelerated to 6.3%, fueling concerns over persistent price pressures and potential Federal Reserve tightening. Meanwhile, a retreat in US Treasury yields and the dollar offered some external relief.