Won Strengthens Against Dollar as KOSPI Sinks
The Korean won strengthened against the US dollar for the first time in nearly 11 months, with the exchange rate falling below 1,400 won per dollar. The won-dollar rate closed at 1,397.7 won per dollar, down 14.1 won from the previous session.
This move was attributed to companies like Samsung Electronics and SK hynix selling large amounts of dollars ahead of this month's interim corporate tax payments. Additionally, recent US consumer and producer price data coming in below expectations has strengthened views that the Federal Reserve will refrain from raising rates next month.
The KOSPI index plummeted 5.8 percent, with SK hynix and Samsung Electronics leading the decline due to ongoing geopolitical tensions and their market impact. The sharp drop was also attributed to rising global bond yields, with the yield on the 30-year US Treasury reaching its highest level since 2007.