KOSPI dips below 2,400 as rate cut concerns weigh on market

[Anchor]

The outlook that the pace of interest rate cuts in the United States will slow down has been hitting our market for two consecutive days.

The KOSPI briefly fell below the 2,400 mark, and the exchange rate is hovering around 1,450 won per dollar.

With next month's base rate decision approaching, there are more variables that the Bank of Korea needs to consider.

Reporter Hwang Hyun-kyu reports.

[Report]

The KOSPI started off with a decline as soon as trading began.

During the day, it fell to 2,389, showing weakness, but barely managed to hold onto the 2,400 mark just before closing.

The collapse of the 2,400 mark, known as a psychological resistance level, is the first since the shock of the failed impeachment motion on Dec. 10.

Foreign investors' "storm" selling dragged down the index.

The background for their exit from the Korean stock market is related to the high exchange rate phenomenon.

[Seo Sang-young/Mirae Asset Securities Researcher: "A weak won means that our economy is not doing well, and the performance of export companies will deteriorate. If performance worsens, the stock market will not rise."]

For two consecutive days, the exchange rate of 1,450 won per dollar is still shaky.

The government's measures to increase demand for the won and reduce demand for the dollar have not been effective.

[Oh Geon-young/Shinhan Bank Shinhan Premier Pathfinder Head: "In the short term, it is true that there is high upward pressure. It will not be easy to reverse the dollar's strength until the U.S. changes its monetary policy."]

Immediately, the Bank of Korea's concerns ahead of next month's base rate decision have deepened.

Considering the difficult domestic economy, it would be appropriate to loosen money through interest rate cuts.

However, if the high exchange rate continues, it could stimulate prices, making it difficult to use the interest rate cut card.

Governor Lee Chang-yong emphasizes the need for economic stimulus through fiscal policy, including supplementary budgets.

At the same time, he shows a cautious attitude, stating that there are many variables to consider regarding interest rate cuts.

This is KBS News Hwang Hyun-kyu.