Data released on Sunday showed that the real effective exchange rate of the South Korean won fell to a more than 17-year low in June, driven by the continued broad strength of the US dollar.

According to data from the Bank for International Settlements (BIS), the real effective exchange rate (REER) of the Korean won stood at 82.99 in June, down 1.75 basis points from the previous month.

This reading is the lowest since March 2009, when the won's real effective exchange rate hit 79.31 in the aftermath of the global financial crisis.

The real effective exchange rate compiled by the BIS is a comprehensive measure of a currency's value relative to those of its major trading partners, adjusted for inflation. It is used to gauge the international price competitiveness of a country's export goods.

The latest decline in the exchange rate stems from a sharp depreciation of the Korean won against the US dollar. The intraday exchange rate on June 30 briefly fell to 1,555 won per US dollar, marking the lowest level for the won in more than 17 years.

The won faces significant depreciation pressure from two factors: persistent large-scale selling of Korean stocks by foreign investors and substantial purchases of US dollars by domestic investors in South Korea.

The monthly average exchange rate of the Korean won against the US dollar in June was 1,527.95 won per dollar, the worst monthly average since the Asian financial crisis in February 1998.

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