Seoul: The South Korean won experienced a significant decline, reaching its lowest point against the U.S. dollar since 2009, as foreign investors continued offloading local stocks. This movement in the currency market is linked to diminishing hopes for a diplomatic resolution to the ongoing conflict in the Middle East.

According to Yonhap News Agency, by 3:30 p.m., the won was quoted at 1,539.1 won per dollar, marking a decrease of 9.4 won from the previous session. This value is the weakest since March 9, 2009. Although the won initially opened at 1,529 won per dollar, showing a slight increase of 0.7 won from the prior session's close, it quickly lost strength as foreign investors sold off local shares.

During Friday's trading, the won fell further to 1,549.1 won per dollar at one point, representing the weakest intraday value since March 10, 2009. Despite pledges from authorities to manage excessive volatility in the foreign exchange market, the won continued its downward trend.

On the same day, foreign investors sold a net total of 3.5 trillion won (approximately US$2.3 billion) worth of local stocks. This marks the 20th consecutive trading session where foreign investors were net sellers of South Korean stocks. The benchmark Korea Composite Stock Price Index (KOSPI) also suffered, plummeting 5.54 percent to close at 8,160.59.

Moon Jeong-hee, an economist at KB Kookmin Bank, attributed the won's decline to the strong demand for U.S. dollars, driven by foreign investors' persistent selloff of local stock holdings.