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Won Falls Prey to Outflows as Locals Join Foreigners’ Exodus

  • Currency has underperformed its emerging Asian peers this year
  • Local investors purchased record amounts of foreign assets
Food Markets in Seoul Ahead of Lunar New Year Holidays
Photographer: SeongJoon Cho/Bloomberg
Updated on

At first glance, the weakness in South Korea’s won is an anomaly. Risk appetite is picking up but the currency is heading south.

The won, which is susceptible to swings in global sentiment, has dropped almost 2% versus the dollar since the start of the year. It’s underperforming all its emerging Asian peers just as global growth bets are gaining traction.