Seoul: The South Korean won has further weakened against the U.S. dollar, reaching a 17-year low as overseas investors continue to sell off local stocks. This development has raised concerns over the stability of South Korea's financial markets.

According to Yonhap News Agency, the won was quoted at 1,549.4 per dollar at 3:30 p.m., reflecting a drop of 4.2 won from the previous session. This marks the weakest level since March 6, 2009. The currency initially opened at 1,543.1 won per dollar, seeing a brief rise of 2.1 won compared to the previous session, but then slumped to a low of 1,550.2 won per dollar during morning trading. Notably, this is the first instance in 16 trading sessions that the won has fallen to the 1,550-won level in intraday trading.

The persistent weakness of the won is attributed to foreign investors maintaining their position as net sellers of South Korean stocks, as they bet on a strong dollar. This trend has been compounded by a dip in the Japanese yen, which has also reached a 40-year low against the dollar.

On Tuesday, foreign investors sold a net 3.8 trillion won (approximately US$2.5 billion) worth of local stocks, marking the eighth consecutive trading session of net selling. Despite the currency's decline, the benchmark Korea Composite Stock Price Index (KOSPI) witnessed a rise of 0.97 percent, closing at 8,476.47.