Seoul: The South Korean authorities sold a net US$13.6 billion in the first quarter to stabilize the foreign exchange market, central bank data showed Tuesday. This move marks the sixth consecutive quarter of net dollar selling since the fourth quarter of 2024, with a cumulative total reaching a net $45.35 billion over the period.

According to Yonhap News Agency, the Korean won weakened to 1,530.1 against the U.S. dollar at the end of March from 1,439 won at the end of last year. This depreciation prompted South Korea's intervention in the foreign exchange market, leading to a significant decline in the country's foreign reserves. The foreign reserves dropped by nearly $4 billion in March, coinciding with the authorities' efforts to counter the sharp depreciation of the won, which followed the outbreak of the U.S.-Iran war.

The March decline represented the largest monthly drop in foreign reserves in 11 months, with the previous significant decrease being $5 billion in April of the previous year. The ongoing intervention highlights the challenges faced by South Korea in maintaining currency stability amid global geopolitical tensions.