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South Korean Won Nears Year Low as Foreign Selling and Weak Yen Drive Fresh Slide

The central bank signals readiness to act if volatility worsens.

Overview

  • The won traded at about 1,467.7 per dollar on Nov. 13, its weakest since April 9 and close to 2025’s low.
  • Pressure reflects heavy foreign stock selling, a softer yen tied to expected Japanese stimulus, broad dollar strength, rising local purchases of U.S. equities, and exporters holding dollars.
  • Bank of Korea Governor Rhee Chang-yong said authorities could intervene if moves become excessive, calling markets excessively sensitive to global uncertainties.
  • Currency swings are complicating company budgeting, with KITA estimating exporters gain roughly 0.5–1% in operating profit for each 10-won rise in the rate while import-dependent firms lose 1–1.5%.
  • Benefits are concentrated in shipbuilding, shipping and autos, whereas petrochemicals and steel face higher input costs and smaller firms report the greatest strain.