The Korean won weakened past the 1,560-per-dollar mark during overnight trading on Saturday for the first time in more than 17 years, sinking to its weakest level since the global financial crisis in 2009.
The won was quoted at 1,559 per dollar at the close of overnight trading at 2 a.m. Saturday, weakening 19.9 won from the close of daytime trading.
During the session, it weakened to as weak as 1,561.5 per dollar, marking its weakest level since March 6, 2009, when it traded at 1,597 won amid the global financial crisis.
Earlier on Friday, the won weakened to an intraday low of 1,549.1 per dollar at 10:27 a.m. before fluctuating in the 1,530-1,540 won range and ending daytime trading at 1,539.1 won.
The currency came under intense pressure during overnight trading, plunging from around 9:30 p.m. following the release of stronger-than-expected U.S. jobs data. It successively breached the psychologically important 1,550 and 1,560 won-per-dollar levels.
The won faced mounting downward pressure from foreign investors’ continued selling of Korean equities and the prolonged conflict in the Middle East, while broad-based dollar strength accelerated the currency’s decline.
The U.S. employment report released later in the day showed that labor market conditions remained stronger than expected in May, reinforcing expectations that the US Federal Reserve could keep interest rates higher for longer.
The stronger data boosted the dollar, with the US Dollar Index, which measures the greenback against a basket of six major currencies, climbing above the 100 mark for the first time in two months.
silverstar@heraldcorp.com
