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.
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 average won-dollar exchange rate during the fourth quarter of last year hit a record high at 1,398.75, according to data released by the Bank of Korea, the highest level since the first quarter of 2009.
The Korean won plummeted further on Friday, breaching the 1,470 won per dollar mark amid escalating political turmoil.
The Korean government issued a verbal intervention Thursday against excessive fluctuations in the local currency after the won sharply depreciated following the U.S. election.
Korea’s foreign reserves ended their three-month dip in July on the back of a foreign currency-denominated debt sale and increased values of non-U.S. dollar assets, central bank data showed Monday.
Trading hours for Korea's foreign exchange market for won-dollar transactions were extended until 2.a.m. from Monday as part of the government's efforts to enhance investors' convenience and improve market access.
Korea JoongAng Daily Sitemap
