Gold prices spiked to a fresh all-time high on Wednesday as investors sought safe-haven assets amid growing uncertainty over U.S. tariff policies and escalating global trade tensions.
Korean stocks opened slightly lower Wednesday, in line with overnight U.S. stock losses amid lingering uncertainty stemming from President Donald Trump's tariff measures.
The Korean won opened at its weakest level since the 2009 global financial crisis, as the won-dollar exchange rate surged past 1,480 won on Wednesday.
A sidecar mechanism was triggered on the main Kospi bourse Monday morning following a sharp drop in the Kospi 200 futures index. It marked the first activation of a sidecar in eight months, the last occurring in August 2024.
Korea's foreign currency deposits fell by nearly $5 billion in February to $98.53 billion, primarily driven by corporate withdrawals.
An employee fans dollar bills at Hana Bank's foreign currency forgery and alteration response center in Jung District, central Seoul, on March 27.
While other currencies are gaining ground against the dollar, the won has remained persistently weak. Internal conditions, experts say, are preventing the currency from stabilizing the same way as others.
In December, foreign currency deposits increased to $101.3 billion, driven by corporate demand for dollar holdings.
A exchange rate approaching dangerously close to 1,500 won to the dollar is inflicting strain on the average household and putting pressure on the central bank to act despite its focus on boosting domestic demand.
The Kospi shed 0.55 points, or 0.02 percent, to close at 2,398.94, with the expected arrest of President Yoon Suk Yeol on insurrection charges weighing on the economy.
Korea JoongAng Daily Sitemap
