The Korean won reached the lowest level against the U.S. dollar since 1998 today as the countrys stock market fell for the eight day in a row and the foreign investors continued to pull-out the funds.
Despite the measures taken by the South Korean government to stimulate the economy and the stock markets, both the currency and the equities continue to decline and show more signs of troubles. The exports will probably decline in November for the first time in 2008.
Not only the falling stocks are decreasing the attractiveness of the Korean won, but also the falling national currency is serving badly for the stock market. Investor dont like to keep their funds in the assets denominated in the weak currency.
USD/KRW rose from 1446.0 to 1496.1 as of 6:30 GMT today after reaching 1515.9 earlier — its new long-term maximum level. Surprisingly enough, such a weak currency isnt helping the countrys exporters much.
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