Korean won falls to fresh 7-month low amid global dollar strengthening

Officials work at a dealing room of Hana Bank in Seoul, Tuesday. Yonhap

The Korean won fell to a seven-month low against the U.S. dollar Tuesday, as hopes for the end of the U.S. government shutdown bolstered the greenback.

The won had been quoted at 1,463.3 per dollar as of 3:30 p.m., down 11.9 won from the previous session. This marked the weakest level since April 9, when it closed at 1,484.1 won.

The currency had remained well below the 1,400-won mark for several weeks amid concerns over U.S. trade policy and other factors, and it slipped further below the psychologically significant 1,450-won threshold for the first time last week amid heavy foreign selling of local shares.

The global trend of a strengthening dollar is putting additional pressure on the Korean won.

The U.S. federal government is nearing the end of its shutdown, which is expected to boost consumption and ease concerns about a U.S. economic slowdown.

Expectations for economic stimulus in Japan have further weakened the yen, also driving the dollar higher, analysts said.