South Korean Won Weakens Amid BOJ Rate Hike Expectations

The South Korean won slightly weakened against the U.S. dollar on Friday following an expected rate hike by the Bank of Japan (BOJ). The won was quoted at 1,383.3 won per dollar at 3:30 p.m., down 1.1 won from the previous trading session's close.

The BOJ's decision to raise interest rates was not unanimous, and the Japanese yen remained weak against the dollar despite this move. The recent slide in the won has been attributed to several factors, including the U.S. Federal Reserve's rate hike and rising oil prices due to military tension between the United States and Iran.

Some traders also point to dollar short-covering ahead of the weekend and the upcoming Chuseok holiday from Sept. 24-27 as contributing to the won's decline. Foreigners bought a net 144.9 billion won worth of local stocks during the latest trading session, with the Korea Composite Stock Price Index gaining 2.66 percent.