Korean Won Hits 1,500 Per Dollar on July 9 as Foreign Investors Sell $57.2B in Stocks

According to the Bank of Korea's report to Parliament on July 9, the Korean won fell to around 1,500 per dollar, driven by foreign investor stock selloffs and expectations for higher U.S. interest rates. The central bank attributed the currency's steeper depreciation compared to other major currencies to geopolitical risks in the Middle East, dollar strength, and large-scale foreign stock net sales. Foreign investors sold 57.2 trillion won ($43.8 billion) worth of domestic stocks in June, following 48.5 trillion won in May and 40.4 trillion won in March.

The Bank of Korea said external borrowing conditions and foreign currency liquidity remain stable, with CDS premiums on foreign exchange stabilization bonds holding at 22.3 basis points as of end-June. The central bank is implementing smoothing operations and conducting currency swap operations to mitigate excessive foreign exchange volatility.