FX.co ★ Won Slides as Investor Caution and Outflows Weigh

The South Korean won has depreciated to approximately 1,469 against the dollar, reaching a seven-month low and approaching levels last witnessed in March 2009. On Wednesday, Governor Rhee Chang-yong emphasized that policymakers are prepared to respond if market volatility exacerbates. Nonetheless, he downplayed the recent declines, attributing them to the market's heightened sensitivity to global influences such as U.S. monetary policy shifts and escalating trade tensions. The absence of a more assertive policy stance from the Bank of Korea has left investors adopting a cautious approach. Ongoing equity outflows and increased overseas investments by South Korean residents have further exerted downward pressure on the currency. Foreign investors have withdrawn a net total of $5.2 billion from local equities, indicating a persistent sense of uncertainty within the market.