Won-Dollar Rate Hits 11-Month Low Amid Global Market Volatility

The Korean won has strengthened against the US dollar for the first time in nearly 11 months. The won-dollar exchange rate closed at 1,397.7 won per dollar on Wednesday, down 14.1 won from the previous session.

This marks a significant milestone as it's been over 10 months since the rate fell below 1,400 won. On October 2 last year, the rate stood at 1,399.5 won.

The KOSPI index plummeted by 5.8 percent, closing at 6,471.17. This sharp decline was triggered by a sell-side sidecar activation, which is a rare occurrence in the market. The sidecar was activated at 9:06 am, marking the 48th time this year.

Foreign and institutional investors sold a net of 3.49 trillion won and 1.32 trillion won in shares respectively. In contrast, retail investors bought a net of 4.64 trillion won.