The South Korean currency continued its decline on Tuesday, remaining below the 1,470 won per US dollar mark. After hitting a near 16-year low, the won opened at 1,468.5 per dollar and later dropped to 1,472.45 won by 9:30 am. In mid-December, the local currency had reached around 1,480 won, but it had briefly risen above 1,450 won in late December following interventions by foreign exchange authorities.
The won has now fallen for ten consecutive trading sessions, closing at 1,468.4 won per dollar on Monday. Analysts attribute this decline to increased demand for dollars from importers and local investors for overseas investments. The weakening of the won is also linked to the depreciation of the Japanese yen.
On the stock market front, South Korean stocks showed positive movement on Tuesday morning, with the benchmark Korea Composite Stock Price Index (KOSPI) rising by 0.46 percent to 4,645.86 as of 11:20 a.m. Despite opening higher and reaching an all-time intraday high of 4,672.04, gains were tempered later in the day, particularly as semiconductor shares turned lower. Auto and technology shares led the market’s upward trend, with Hyundai Motor and Hyundai Mobis registering significant gains.
