On the 21st, the won-dollar exchange rate closed at 1,475.6 won, up 7.7 won from the previous day. It is the record high since Apr. 9, when U.S.-China trade tensions were at their peak (1,484.1 won). The rise was driven by spreading unease in the U.S. stock market over concerns that artificial intelligence (AI) is overvalued.
The exchange rate opened at 1,472.4 won, up 4.5 won from the prior transaction. The gains continued to widen afterward.
The exchange rate's rise was due to foreign investors selling shares, mainly AI-related stocks, in the domestic stock market. Demand to convert won into dollars increased.
On the day, foreign investors were net sellers of domestic stocks worth 2.8215 trillion won. The one-day net selling amount was the largest this year. As a result, the Korea Composite Stock Price Index (KOSPI) closed down 3.79% at 3,853.26.
The domestic stock market was affected by declines in the U.S. stock market. The three major U.S. stock indexes in New York, which closed early that morning Korea time, all fell. U.S. semiconductor bellwether Nvidia dropped 3.15%, leading declines among AI tech stocks.