Seoul:The South Korean won experienced a significant decline against the U.S. dollar on Tuesday, influenced by continued foreign investor sell-offs in the local stock market. This sell-off coincided with the benchmark KOSPI index plummeting more than 5 percent.
According to Yonhap News Agency, the won was trading at 1,345.1 won per dollar by 330 p.m., marking a decrease of 10 won from the previous session's close. The KOSPI index faced a steep drop of 5.46 percent earlier in the day, mainly driven by renewed concerns over investments in artificial intelligence.
The decline was particularly pronounced for major companies like Samsung Electronics and SK hynix. These firms were adversely affected by reports that China's CXMT had achieved progress in advanced chip technology, potentially challenging the two South Korean semiconductor giants.
Foreign investors continued to offload local stocks, selling a net 4.5 trillion won (approximately US$3.4 billion) during the latest trading session. This marked the sixth consecutive session of net selling by foreign investors.