True
The Korean won weakened to the high-1,330 range against the US dollar as investor sentiment toward AI deteriorated, adding pressure on the local currency amid a broad retreat in risk appetite.
The won's slide to the high-1,330 won-per-dollar range came as concerns mounted over the outlook for AI-related investment. Deteriorating sentiment around the AI trade has weighed on currencies across Asia, and the won, sensitive to shifts in global risk appetite and the semiconductor cycle, has been no exception.
Korea's heavy reliance on the semiconductor sector means swings in AI market mood translate quickly into currency volatility. With AI-related shares under pressure, the won found little support, keeping the currency pinned in the high-1,330 range against the dollar.
The direction of the exchange rate from here remains tied to how AI investor sentiment evolves, with no clear signs of a near-term reversal in the current soft tone.
The claim that the won traded in the high-1,330 won-per-dollar range amid worsening AI investor sentiment is True.