As of 11:00 AM Beijing time, the Korean won fell 1% against the US dollar, the largest drop among Asian currencies, completely erasing overnight gains driven by intervention rumors. At the same time today, Korean stocks rebounded sharply by 17%, but this failed to lead to a corresponding strengthening of the won, presenting a "strong stocks, weak currency" pattern. This year's rise in Korean stocks has largely been driven by overseas funds chasing AI and semiconductor sectors, while the market, concerned about Korean economic growth, the interest rate differential between Korea and the US, and residents' continued allocation of overseas assets, has been reluctant to buy won and bear exchange rate risk.
