Won Holds in 1,555 Range for Second Day, Highest Since 2009 Financial Crisis

Foreign Investors Sell 4.3 Trillion Won of Stocks

The won stayed in the 1,550-per-dollar range for a second straight day as foreign investors continued heavy selling of South Korean stocks.

In Seoul trading on July 2, the won closed the daytime session at 1,555.8 per dollar as of 3:30 p.m., compared with 1,554.9 won a day earlier.

The currency opened at 1,552.3 per dollar, down 2.6 won from the previous close, and strengthened to as much as 1,550.7 during the session before paring gains late in the day. After finishing at 1,554.9 won on July 1, its highest since March 5, 2009, when it reached 1,568.0 during the global financial crisis, the won rose again on July 2 to set another high for the period.

Foreign investors, who have been net sellers of local stocks for 10 straight trading days, sold about 4.3 trillion won ($3.1 billion) worth of shares on the Kospi market on July 2, adding pressure on the currency. Still, the move was limited as dollar strength eased after Kevin Warsh, identified in the article as chair of the Federal Reserve, said inflation risks had receded. The dollar index, which measures the greenback against six major currencies, stood at 101.235, down 0.176 from the same time a day earlier.

Remarks from Vice Finance Minister Hur Jang also appeared to influence trading. He said earlier in the day that authorities were ready to take immediate market-stabilization steps if the exchange rate became disconnected from fundamentals and one-sided moves intensified.

Park Su-rim, Hankyung.com reporter paksr365@hankyung.com