South Korean won slides to 17-year low against US dollar

The South Korean won fell to its weakest level since 2009 Friday, touching 1,561.5 per US dollar in overnight trading after stronger-than-expected American jobs data drove up the greenback and deepened foreign selling of Korean equities, The Korea Times reported.

The breach of the 1,560 psychological barrier highlights persistent downward pressure on Asian currencies as Federal Reserve rate-cut expectations recede, raising concerns about South Korea's import costs and broader financial stability.

During overnight trading that followed the close of regular Seoul foreign exchange sessions, the won weakened to 1,561.5 per dollar — a level not seen since March 2009 — before closing the overnight session at 1,559.0, according to The Korea Times.

In regular Friday trading, the dollar had already pressed higher, reaching an intraday high of 1,549.1 before the session ended at 1,539.1. The decline accelerated after the release of a US employment report that exceeded market forecasts, driving the exchange rate through the 1,550 and 1,560 levels in quick succession during overnight hours.

The stronger jobs data reinforced expectations that the Federal Reserve would keep interest rates elevated for a prolonged period, lending broad support to the dollar. Concerns over the economic fallout from Middle East conflict added to selling pressure on the won.

Foreign investors continued offloading South Korean equities despite verbal warnings from government officials. South Korean finance authorities pledged to take stabilizing measures if market moves were judged excessive, while stressing that the country's current economic fundamentals differ markedly from the conditions that prevailed during the 2008-2009 global financial crisis.

The won's move past 1,560 marks a new 17-year benchmark for the exchange rate's drift from recent historical norms, with the Federal Reserve's monetary policy trajectory and the pace of foreign equity outflows set to remain the dominant variables shaping the currency's near-term direction.