The South Korean won has dropped almost 6% against the US dollar this year, as per central bank data. Foreign investors have offloaded over 156 trillion won ($102.3 billion) in domestic stocks. The average exchange rate was 1,484.56 won per dollar in the first half of the year, the Bank of Korea’s Economic Statistics System reported.
It marked the second-highest first-half average on record, trailing only behind the first half of 1998 during the Asian financial crisis. The exchange rate surpassed 1,500 won in March for the first time since the global financial crisis, triggered by conflict in the Middle East. Despite a brief dip to the low 1,400-won range, it rose above 1,500 won in mid-May and has since stayed above this level.
The won’s general weakness in 2021 has positioned it as one of the weakest major currencies. By July 3, the Korean currency had depreciated by 5.92% against the dollar compared to the previous year’s end. Among the Group of 20 currencies, only the Turkish lira and the Indonesian rupiah saw larger declines at -8.23% and -6.56%, respectively.
