You can tell by looking at the personal name coins that the universe is currently the strongest Foreign capital pushed up the foam while running away, directly bringing down the Korean won. In early July, the Korean won fell to a 15 year low against the US dollar The cyclical logic sorted out by Bank of America is completely in line with the current market situation: whenever there is any external movement, overseas institutions begin to reduce their holdings of Korean stocks; In order to avoid losing profits due to the depreciation of the Korean won, everyone is rushing to exchange for US dollars as a hedge, causing a surge in demand for US dollars in the market In addition, the Korean people have always loved to invest money overseas, and the domestic US dollar can only be exported but not imported, causing the exchange rate to fall even more fiercely In the end, it turned into a vicious cycle - the more the Korean won fell, the more foreign investors wanted to clear their positions and switch to the US dollar, and the stock market and exchange rate dragged each other down, unable to stop. After the foam was blown out, there was a sharp drop. Now the Korean index has dropped by a quarter from its high point, and the market is in panic The Bank of Korea was forced to raise interest rates again after several years, with the benchmark rate raised by 25 basis points to 2.75%. But this move only addresses the symptoms and not the root cause. Raising interest rates was originally intended to stabilize the exchange rate, but instead widened the interest rate gap between the US and US bonds, which will only make foreign investment run faster and increase the pressure on the stock market, making it difficult to balance both sides.