Korean won dips to lowest level in 16 yrs on looming U.S. tariffs, short selling resumption

SEOUL, March 31 (Yonhap) -- The South Korean currency weakened markedly against the U.S. dollar Monday to reach the lowest level in about 16 years amid growing concerns about the impact of the Donald Trump administration's sweeping tariff plan and the resumption of stock short selling.

The Korean won was quoted at 1,472.9 won against the greenback at 3:30 p.m., down 6.4 won from the previous session.

The reading marks the lowest level since March 13, 2009, when the won was quoted at 1,483.5 won as the country was grappling with the aftermath of the global financial crisis.

The local currency has stayed near the 1,450-won level since December amid the U.S. tariff warnings and a domestic political crisis sparked by President Yoon Suk Yeol's martial law imposition.

Washington is set to announce reciprocal tariffs on Wednesday (U.S. time), emphasizing that all countries will be targeted.

"In addition to the tariff issues, Investors were wary of the possibility of stagflation in the U.S., where economic growth slows while inflation stays high. The resumption of stock short selling also heightened investors' risk-aversion sentiment," Lee Min-hyuk, an expert from KB Kookmin Bank, said.

Stock short selling resumed Monday, allowing investors to sell borrowed shares of listed firms in Seoul. The practice had been banned since November 2023.

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