Seoul: The South Korean currency fell to its lowest level in nearly seven months against the U.S. dollar Friday, weighed down by risk-aversion sentiment stemming from global uncertainties and mounting fears of an artificial intelligence (AI) bubble. The won was quoted at 1,456.9 per dollar as of 3:30 p.m., down 9.2 won from the previous session. It marked the weakest level since April 9, when it closed at 1,484.1. It also was the first time since April that the currency slipped below the psychologically crucial 1,450 won threshold.

According to Yonhap News Agency, the won had remained well below the 1,400 won mark for several weeks amid concerns over U.S. trade policy and other factors, prompting financial authorities to issue a verbal warning in mid-October. Foreign selling of local stocks increased following recent sharp gains amid valuation concerns and diminishing expectations for a U.S. rate cut, further adding pressure on the local currency. Investors also remained cautious over signs of a slowing U.S. job market.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 1.81 percent to close at 3,953.76 on Friday. "As a record amount of foreign capital has recently flown into the local stock market, there is a potential risk of significant outflows if unexpected shocks occur, which could lead to greater volatility in the won-dollar exchange rate," Lee Min-hyuk, an economist at KB Kookmin Bank, said.