Today the majority of the Asian currencies, including the South Korean won, fell down on the Forex market as the investors expected that the global financial turmoil will decrease the capital inflow into the emerging Asian economies.
Even the Japanese yen declined today against the other major currencies today, almost reversing the yesterdays strong gain.
The South Korean won reached the two-year bottom against the U.S. dollar, as the slowdown on the regional stock markets decreased the demand for the local currency.
The Korean currency fell from 980.60 won/dollar to 970.00 per dollar (more than 1% decline) during the Asian trading session. Its now at its weakest rate against the U.S. dollar since March 2006.
The reason for the overall wons major bearish trend this year is the countrys increasing current-account deficit and the recent capital outflows connected with the stock market sell-offs.
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