Korean won hits fresh 17-year low on fund outflows

The won-dollar exchange rate is displayed at a dealing room in Hana Bank, Seoul, Monday. Yonhap

The Korean won weakened further against the U.S. dollar to hit a fresh 17-year low Tuesday, as overseas investors continued to sell local stocks.

The won was quoted at 1,549.4 won per dollar at 3:30 p.m., down 4.2 won from the previous session, marking the weakest level since March 6, 2009.

The won opened at 1,543.1 won per dollar, up 2.1 won from the previous session, but fell to as low as 1,550.2 won per dollar at one point in the morning trading.

It was the first time in 16 trading sessions that the won slumped to the 1,550-won level in intraday trading.

The won's weakness has continued as foreign investors remained net sellers of local stocks with investors betting on a strong dollar.

Adding pressure on the won, the Japanese currency also dipped to a 40-year low against the dollar.

Foreign investors sold a net 3.8 trillion won ($2.5 billion) worth of local stocks on Tuesday, remaining net sellers of local stocks for the eighth consecutive trading session.

The benchmark Korea Composite Stock Price Index (KOSPI), meanwhile, rose 0.97 percent to close at 8,476.47.