South Korean Won Edges Lower Amid Foreign Selling
The South Korean won weakened to around 1,344 per dollar on Tuesday, retreating from the previous session's gains as foreign equity outflows continued to weigh on the currency. Foreign investors sold a net KRW 693 billion ($514 million) worth of local shares on Monday, marking their seventh consecutive session of net selling and limiting demand for the won. Moreover, dollar conversions by domestic semiconductor exporters added to downward pressure on the exchange rate, with companies reportedly stepping up sales after the rate climbed into the 1,360-won range in the previous session. Meanwhile, improving global risk appetite, following an overnight rally on Wall Street and a sharp decline in oil prices, helped limit the won's losses. Hopes for renewed US-Iran cease-fire negotiations also eased geopolitical concerns.
The South Korean won weakened to around 1,344 per dollar on Tuesday, retreating from the previous session's gains as foreign equity outflows continued to weigh on the currency. Foreign investors sold a net KRW 693 billion ($514 million) worth of local shares on Monday, marking their seventh consecutive session of net selling and limiting demand for the won. Moreover, dollar conversions by domestic semiconductor exporters added to downward pressure on the exchange rate, with companies reportedly stepping up sales after the rate climbed into the 1,360-won range in the previous session.
Meanwhile, improving global risk appetite, following an overnight rally on Wall Street and a sharp decline in oil prices, helped limit the won's losses. Hopes for renewed US-Iran cease-fire negotiations also eased geopolitical concerns.