(LEAD) S. Korea's currency tumbles to 17-year low on foreign stock selloff

(ATTN: UPDATES with latest, analyst's quote; CHANGES headline)

SEOUL, June 5 (Yonhap) -- The South Korean won tumbled to the lowest level since 2009 against the U.S. dollar Friday, as foreign investors continued to sell local stocks amid fading expectations of a diplomatic solution to the war in the Middle East.

The won was quoted at 1,539.1 won per dollar at 3:30 p.m., down 9.4 won from the previous session, marking the weakest level since March 9, 2009.

The won opened at 1,529 won per dollar, up 0.7 won from the previous session's close, but lost ground as foreign investors offloaded local shares.

The won's weakness came even as authorities have pledged to take measures to deal with excessive volatility in the foreign exchange market.

On Friday, foreign investors sold a net 3.5 trillion won (US$2.3 billion) worth of local stocks.

Foreign investors remained net sellers of local stocks for the 20th consecutive trading session.

The benchmark Korea Composite Stock Price Index plunged 5.54 percent to close at 8,160.59.

Moon Jeong-hee, an economist at KB Kookmin Bank, said that the won's weakness was due to a strong demand for U.S. dollars as foreign investors continued to sell off local stock holdings.

A clerk sorts US$100 banknotes at the headquarters of Hana Bank in Seoul in this file photo taken May 7, 2026. The country's foreign reserves gained $4.22 billion from a month earlier to $427.88 billion as of end-April, rebounding despite efforts by authorities to manage exchange rate volatility, according to data from the Bank of Korea. (Yonhap)