U.S. 'Blue Wave' Fallout Sends Stocks Tumbling; Won-Dollar Rate Tops 1,350 Won (Update)

Won-Dollar Rate at 1,356.6 Won at 3:30 p.m. on Nov. 6, Up 14.5 Won
Highest Since Oct. 1 (1,358.4 Won)

On November 6, the won-dollar exchange rate rose above 1,350 won. As concerns about regulations on AI data centers intensified following the U.S. midterm elections, stock markets plunged and the won continued to weaken.

KOSPI plunged more than 8% on the 6th, falling below the 5,000 mark intraday. The KOSPI and KOSDAQ indices are displayed at the Korea Exchange in Yeouido, Seoul. Yonhap News

In the Seoul foreign exchange market, the won-dollar exchange rate stood at 1,356.6 won as of 3:30 p.m., up 14.5 won from the previous trading day. It was the highest level since October 1 (1,358.4 won). The rate opened at 1,358.0 won, moved sideways and then turned higher, reaching 1,362.2 won around 12:20 p.m.

Concerns that regulations on AI data center construction would be tightened following the U.S. midterm elections, where the Democrats scored a sweeping victory in a "blue wave," fueled worries about slowing semiconductor demand. Overnight, New York stocks fell sharply, led by companies linked to the AI value chain. The Dow Jones Industrial Average fell 3.44% from the previous trading day. The Nasdaq Composite and the S&P 500 plunged 5.52% and 4.36%, respectively.

The KOSPI closed at 5,059.69, down 6.02% from the previous session. Volatility was extreme: the index fell below the 5,000 mark early in the session, triggering a circuit breaker on the main bourse, followed by a sell-sidecar measure. Continued foreign investor selling in the stock market pushed the exchange rate higher. Foreign investors were net sellers of approximately 2.8 trillion won worth of shares on the main bourse that day. They have been net sellers for six consecutive trading days.

The U.S. Dollar Index, which measures the dollar's value against six major currencies, rose 0.578 to 101.807.

Earlier that day, the relevant authorities held a joint meeting to review market conditions and announced that, starting November 9, they would temporarily waive for three months the requirement for securities firms to maintain a 140% collateral ratio for margin loans, as a measure to ease volatility.

This content was produced with the assistance of AI translation services.