The U.S. central bank chief noting on Wednesday afternoon that stimulus measures might close by the end of this year tugged down the South Korean won on Thursday as the monetary unit plunged near its 11-month trough against the U.S. dollar, Bloomberg reports.
Chairman Ben Bernanke with the U.S. Federal Reserve told a press conference after two days of policy meetings adjourned that the central bank will be influenced by the economic data it monitors. Five-year bonds issued by the South Korean government drove to their top level in almost one year on Thursday.
"I think the dollar-won rate could jump one more time given how risk-off the market sentiment is," one foreign bank dealer told Reuters on Thursday. "The dollar-won rate has pushed above the year-to-date high, so there aren't any meaningful psychological resistance levels for the near term."
Foreign investors sold more South Korean stocks than they purchased for the 10th straight day, signifying the lengthiest streak of net sales in almost three months.
The won's drop against the world's reserve currency was as high as 1.3 percent against the dollar following its closing value on Wednesday, according to Reuters.
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