Korean Won Hits 17-Year Low Against US Dollar Amid Strong Currency Demand

The Korean won's real effective exchange rate (REER) has hit its lowest level in over 17 years, according to data from the Bank for International Settlements (BIS). In June, the won's REER stood at 82.99, down 1.75 points from the previous month.

This marks a significant decline as the U.S. dollar remained strong throughout the month. The won weakened sharply against the dollar, hitting an intraday trading high of 1,555 won per dollar on June 30, its weakest level in over 17 years.

The currency's decline was driven by heavy foreign selling of South Korean stocks and strong dollar demand from domestic investors. As a result, the won averaged 1,527.95 against the U.S. dollar in June, its weakest monthly average since February 1998 during the Asian financial crisis.