The South Korean won weakened to around 1,557 per dollar, nearing its lowest level since March 2009, when it traded close to 1,560 earlier in June. The currency remained under pressure from persistent foreign selling of local equities and broad-based demand for the US dollar.
Overseas investors were net sellers of Korean stocks for the eighth consecutive session, extending capital outflows as global funds cut exposure to Korean technology shares. The won also faced additional headwinds from a stronger US dollar after US labor market data beat expectations, pushing Treasury yields higher and reinforcing the view that the Federal Reserve may raise interest rates later this year.
This currency weakness came despite record trade figures in June. South Korea’s exports jumped 70.9% year-on-year to $102.25 billion, the first time monthly shipments have ever exceeded $100 billion. The trade surplus widened to an all-time high of $36.15 billion, driven largely by semiconductor exports, which nearly tripled to $44.82 billion on the back of strong AI-related demand.
