KOSPI plunge leads to won`s fall

The Korea Composite Stock Price Index (KOSPI) plummeted 35.72 points Friday to close the day at 591.73. Mainly affected by the stock market collapse, the won lost even more ground against the U.S. dollar.

In the foreign exchange market Friday, the won depreciated by 4.0 won from the previous day, trading at 1,277.90 won per dollar as of 3:34 p.m. The Korean currency started the day at 1,273.0 won to the greenback, an appreciation of 0.90 won from the previous day, due to the strong yen. It rose to 1,275 won to the dollar at one point, but fluctuated just above its opening level through most of the morning.

As foreign investors staged a massive sell off in the futures market in the afternoon, however, stock prices plunged sharply, and the won's value fell. Meanwhile, the yen maintained its strength, fluctuating in a range between 116.81 yen and 116.91 yen to the dollar.