Won-dollar rate falls below 1,400 won for 1st time in 11 months

For the first time in nearly eleven months, the Korean won has surged to below 1,400 won per U.S. dollar. The exchange rate closed at 1,397.7 won, a drop of 14.1 won from the previous day. This marks the lowest level since October 2nd last year, when the rate was 1,399.5 won. Industry leaders such as Samsung Electronics and SK hynix reportedly sold significant quantities of dollars prior to the interim corporate tax payments this month.

Recent U.S. consumer and producer price figures were also below forecasts, adding weight to the belief that the Federal Reserve will hold off on raising interest rates next month. However, the stock market suffered a substantial decline due to worries about surging global bond yields. The KOSPI index closed at 6,471.17 points, a 5.8 percent reduction from its previous close.

The index had opened 4.96 percent lower and continued its downward trend, prompting a sell-side sidecar at 9:06 a.m. This incident marked the 48th sidecar activation on the KOSPI this year. Foreign and institutional investors collectively sold a net amount of 3.49 trillion won.