Strong U.S. dollar is wreaking havoc across global economy, including the won-dollar exchange rate which soared above 1,380 won, recording the highest in 13 years and five months. KOSPI plunged by more than one percent to 2,400 points, owing to concerns of austerity measures in the U.S. Foreign investors cashed out of Korean stocks by selling a net 500 billion won on Wednesday alone, provoking stock prices to drop and exchange rates to soar.
The won-dollar exchange rate closed at 1,384.2 won, up by 12.5 won from the previous trading day, hitting the highest figure in terms of the closing price since March 30, 2009 (1,391.5 won). The exchange rate rose above 1,388 won and edged nearer to 1,390 won, riding high by more than 80 won in less than a month.
The KOSPI ended at 2,376.47 points on Wednesday, down by 33.56 points (1.39 percent) from the previous trading day, owing to the selloff of foreign investors and institutional investors. KOSDAQ also decreased by 1.45 percent. The value of yen depreciated due to strong U.S. dollar. The yen-dollar exchange rate recorded 144.02 points, exceeding the 144-yen mark against the U.S. dollar, hitting a new 24-year low.