Boosted by falling oil prices and heavy corporate selling of U.S. dollars, the Korean won hit a two-year intraday high on Monday. After returning from a three-day long weekend holiday, the won strengthened by as much as 0.8% to 1,333.3 per U.S. dollar before easing to a 0.6% gain. Most Asian currencies also moved upward. The Japanese yen is currently trading at 158.21 yen per U.S. dollar.
Year-to-date, the Korean won has appreciated by 7.6%. Fueled by strong exports and corporate dollar selling, it has transformed from being Asia's worst-performing currency in the first half of the year to the best-performing in the second half.
Additionally, the U.S. International Trade Commission announced last Friday (9th) that it has initiated a Section 337 investigation into certain Vertical Power Delivery (VPD) systems, components thereof, and computing systems containing such products, alleging patent infringement of U.S. power supply company Vicor.
The stronger won weighs on exports, sending South Korea's KOSPI index tumbling 3.6%. Heavyweight stocks SK Hynix and Samsung Electronics both fell 4%, while Hong Kong-listed South Korean ETFs were also pressured; XL Two Southern Samsung (07747) dropped 7.7%, closing at HK$66.70; Southern KOSPI (03121) declined 2.3%, closing at HK$6.275; A Southern Korea Call (03537) fell 4.3%, closing at HK$8.94.
| Stock (Code) | Current Price (HK$) | Change (%) |
|---|---|---|
| XL Two Southern Hynix (07709) | 31.70 | Down 10.45% |
| XL Two Southern Samsung (07747) | 66.70 | Down 7.75% |
| Southern KOSPI (03121) | 6.275 | Down 2.33% |
| A Southern Korea Call (03537) | 8.94 | Down 4.28% |