Won Weakens to Two-Month Low as Plunge in Oil Deters Risk-Taking
- Cheaper crude to spur more outflows from stocks, Samsung says
- Kospi index falls for fifth day as foreign funds net sellers
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The won fell to a two-month low as an overnight plunge in oil prices deterred risk-taking and raised the prospect of more outflows from South Korean shares.
Brent crude dropped by more than 5 percent to a six-year low on speculation a global glut will be prolonged after the Organization of Petroleum Exporting Countries effectively abandoned its strategy of limiting output to control prices. Saudi Arabia, the world’s top producer of the commodity, was the biggest seller of South Korean stocks in September and October, according to Financial Supervisory Service data. Foreign funds net sold the equities on Tuesday and have pulled $2.4 billion from them this quarter.