Seoul: The South Korean currency fell to its lowest level in nearly seven months against the U.S. dollar Wednesday, weighed down by heavy foreign stock selling amid growing fears of an artificial intelligence (AI) bubble. The won had been quoted at 1,449.4 per dollar as of 3:30 p.m., down 11.5 won from the previous session. It marked the lowest level since April 11, when it closed at 1,457.2.

According to Yonhap News Agency, the currency has remained below the psychologically important 1,400-won level for several weeks amid concerns over U.S. trade policy and other factors, prompting financial authorities to make verbal intervention in mid-October. The won extended its losses in tandem with a sharp stock market decline in the day.

The benchmark Korea Composite Stock Price Index (KOSPI) sank 2.8 percent to finish at 4,004.42 on Wednesday, led by tech giants Samsung Electronics and SK hynix, as foreign investors went on a selling spree to lock in profits from recent rallies amid valuation concerns and waning expectations for a U.S. interest rate cut. The bourse operator briefly halted sell orders for program trading after KOSPI 200 futures plunged more than 5 percent in intraday trading.

South Korean stocks have been among the world's best performers this year, supported by government-led market reform measures, and optimism over the AI and technology boom. The U.S. dollar has strengthened, with the dollar index, which measures the greenback's value against six major currencies, rising to 100.253 overnight, the highest intraday level since Aug. 1, when it reached 100.255.

"The won could weaken to the upper 1,400-won range, and if supply-demand imbalances deepen, it could even fall to around 1,500 won," Park Hyung-jung, an economist at Woori Bank, said. "Key factors include the strength of the U.S. dollar, capital outflows to the United States and U.S. monetary policy trends."