The one-month non-deliverable contract tumbled 3.6 percent to 1,155.34 per dollar as of 3:29 p.m. in Seoul, according to data compiled by Bloomberg. The won closed 1 percent lower at 1,137.49.
European stock benchmarks and US stock-index futures fell while Asian equities extended their losses after North Korea fired artillery shells into South Korea near the two nations’ western border.
South Korea’s Joint Chiefs of Staff said in a statement that they returned fire even as Seoul put its military on high alert saying that it will “respond strongly” to further provocation from North Korea.
Won forwards dropped the most in six months after Yonhap News reported that North Korea fired tens of artillery shells near the western border with the South, prompting the latter’s military to return fire.
The one-month non-deliverable contract tumbled 3.6 percent to 1,155.34 per dollar as of 3:29 p.m. in Seoul, according to data compiled by Bloomberg. The won closed 1 percent lower at 1,137.49.
The German DAX 30 index opened down 0.4% 6,791.88, while the France CAC 40 index opened down 0.7% to 3,792.18, and the FTSE 100 index opened down 0.6% to 5,644.31.
The Stoxx Europe 600 opened down 0.4% to 266.60.
The dollar and the Swiss franc strengthened after North Korea and South Korea exchanged artillery fire, boosting demand for safe haven assets. The greenback rose against all of its 16 major counterparts except the franc.
The dollar appreciated to $1.3554 per euro as of 6:56 a.m. in London from $1.3627 in New York yesterday. The U.S. currency rose to 83.71 yen from 83.33 yen.
The franc strengthened to 1.3406 per euro from 1.3484.
The euro declined for a second day against the dollar on speculation that an election in Ireland will hinder the nation’s aid talks with the European Union and the International Monetary Fund (IMF).
The MSCI Asia Pacific (ex-Japan) Index touched a five- week low. The Index declined 1.9% to 455.84 as of 2:59 p.m. in Hong Kong, headed for its lowest close since Oct. 12.
Japanese markets were closed for a holiday today.
Hyundai Motor Co. closed 3.1% lower in Seoul before reports of the attack.
crude oil futures fell further after Yonhap’s report.
Meanwhile, South Korea's central bank said it will hold an emergency meeting of senior officials at 6 p.m. local time following the border firing by North Korea.
The Bank of Korea would assess the possible market impact but the meeting was not aimed at reviewing interest rates, an official at the central bank said.
