Seoul: The South Korean won hit another seven-month low against the U.S. dollar on Wednesday, weighed down by heavy stock selling by foreign investors and a weaker Japanese yen amid expectations of an economic stimulus. The won had been quoted at 1,465.7 per dollar as of 3:30 p.m., down 2.4 won from the previous session. This marked the weakest level since April 9, when it closed at 1,484.1 won.

According to Yonhap News Agency, the local currency slipped below the psychologically significant 1,450-won threshold last week for the first time since April, and fell further to the 1,460 won level on Tuesday amid heavy foreign selling of Korean shares following recent sharp gains. The weakness came as the dollar strengthens globally, supported by easing uncertainties in the U.S. economy and expectations of an economic stimulus in Japan, which have further weakened the yen.

Baek Seok-hyun, an economist at Shinhan Bank, observed that apart from foreign selling of local shares, increasing investments by local investors in U.S. stocks have also been noticed. Exporters are holding onto U.S. dollars rather than selling them immediately, given the recent foreign exchange trend.