Korean won slides further against U.S. dollar on foreign selloff of local stocks

The Korean won weakened further against the U.S. dollar Thursday, due to the steady selling of local stocks by foreign investors. The won was quoted at 1,555.8 won per dollar at 3:30 p.m., down 0.9 won from the previous session, with the exchange rate remaining at the 1,550-level for the second consecutive day. The won opened at 1,552.3 won per dollar, up 2.6 won from the previous session, after remarks by U.S. Federal Reserve Chair Kevin Warsh that inflation expectations had moderated. On Wednesday, the won hit its weakest level since March 5, 2009, slumping to 1,554.9 won to the dollar at the close of onshore trading. Foreign investors sold a net 4.3 trillion won ($2.7 billion) worth of local stocks on Thursday, remaining net sellers of local stocks for the 10th consecutive trading session. Earlier in the day, Vice Finance Minister Huh Chang said the government is ready to take measures to stabilize the foreign exchange market if necessary. Huh said the exchange rate is "misaligned" given the nation's economic fundamentals.