Korean Won Edges Up Despite Strong Dollar Trends

The Korean won saw a modest rise against the U.S. dollar on Tuesday, despite the greenback's overall strength. The exchange rate closed at 1,343.6 won per dollar, up 0.4 won from the previous session. This movement came as expectations for a Federal Reserve rate hike this month dimmed following a slower-than-expected growth in the U.S. job market in September.

However, rising U.S. Treasury yields remained a key focus, with the 10-year yield reaching 5.34 percent, the highest level since April 2002. This surge in yields added pressure on the Korean won, even as the Fed's potential policy tightening seemed less likely.

Foreign investors continued to sell Korean stocks, offloading 1.7 trillion won ($1.27 billion) worth of local equities. The Korea Composite Stock Price Index (KOSPI) fell 0.89 percent to close at 6,941.39, reflecting the bearish sentiment.