The decline came less than a day after the exchange rate weakened past 1,540 won during extended trading, marking its highest intraday level since the global financial crisis.
It appears to be largely due to a sharp sell-off in South Korean stocks. The country's benchmark KOSPI tumbled more than 6 percent at one point, briefly falling below 8,100, while a sell-side program trading curb, known as a sidecar, was triggered to slow the pace of the decline.
The selloff followed overnight weakness in U.S. technology shares, with Broadcom falling sharply after its earnings release. The decline weighed on investor sentiment toward artificial intelligence (AI) and semiconductor-related stocks, which have been among the key drivers of the recent rally in Seoul.
Foreign investors were net sellers of more than 2 trillion won worth of KOSPI shares during the morning session.
The selling followed a wave of foreign outflows earlier this week. Foreign investors sold a net 16.5 trillion won worth of KOSPI shares from Monday to Thursday - over just three trading sessions in June.
The dollar index and the dollar-yen exchange rate showed relatively limited movements during the same period, while the won's decline deepened alongside foreign selling in the local stock market.
Bond yields also extended their rise, though the pace of increase was more limited than the previous session. During morning trading, the three-year government bond yield was up 2.1 basis points at 3.879 percent, while the 10-year yield rose 2.6 basis points to 4.255 percent.
The move followed a sharp selloff in the bond market, when the three-year yield jumped 8.5 basis points to close at 3.858 percent and the 10-year yield climbed 9.4 basis points to 4.229 percent.
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