Seoul: The South Korean currency continued its downward trend on Tuesday, trading below 1,470 won per U.S. dollar, following its recent recovery from a near 16-year low.
According to Yonhap News Agency, the won opened at 1,468.5 per dollar, a slight dip of 0.1 won from the previous session, and further declined to 1,472.45 won by 9:30 a.m. The won had previously plunged to around 1,480 won in mid-December before recovering to above 1,450 won on December 24. This rebound was attributed to verbal interventions and policy measures by foreign exchange authorities aimed at stabilizing the market.
Despite these efforts, the won has been on a downward trajectory for eight straight sessions since December 30, closing at 1,468.4 won per dollar on Monday. Min Kyung-won, an analyst at Woori Bank, noted that demand for dollars from importers and local investors seeking overseas stock investments has contributed to the rising exchange rate. He also mentioned that the won's depreciation aligns with similar trends observed with the Japanese yen.