On the 21st in the Seoul foreign exchange market, the won-dollar exchange rate started transaction at 1,472.4 won, up 4.5 won from the previous day. Investors who judged that artificial intelligence (AI) related stocks, including U.S. semiconductor bellwether Nvidia, had risen excessively sold those shares, affecting the market.
On the U.S. Nasdaq market, Nvidia rose 2.85% on the previous day when it released third-quarter results, then fell 3.15% on the day. It rose after releasing results that beat securities industry experts' forecasts, then fell as some investors sold the stock on the view that the gains were excessive. As a result, the three major U.S. stock indexes in New York also fell across the board on the day.
According to Reuters, Lisa Cook, a U.S. Federal Reserve (Fed) governor, said in a public speech the previous day that "I see an increased likelihood that highly valued asset prices could fall," signaling caution about an AI bubble.
In the domestic stock market, foreign investors selling AI-related shares are acting as a factor pushing the exchange rate lower. The Korea Composite Stock Price Index (KOSPI) started transaction at 3,908.70, down 2.40% on the day, and was down 3.91% as of 9:07 a.m. When foreign investors sell stocks, demand arises to convert won into dollars, causing the exchange rate to rise.