Won Surges as Foreign Investors Flood Korean Stocks

The South Korean won has strengthened against the US dollar due to net purchases by foreign investors in local stocks. The won was quoted at 1,424 won per dollar on July 31, up 13.4 won from the previous day's rate.

This comes after the won hit a nine-month high following suspected market-smoothing operations by authorities. Overnight, the won advanced to as high as 1,419 won per dollar, leading traders to speculate that such operations were conducted.

Foreigners bought a net 7 trillion won (US$4.9 billion) worth of local stocks during the latest trading session, with the benchmark Korea Composite Stock Price Index soaring 17.91 percent to close at 6,595.45.

The strength of the won is in line with a gain in the Japanese yen, which rose to about 158 per dollar in overnight New York trading, its strongest level in over two years.