Korean won dips into 1,370 level against dollar

The Korean won has dropped to 1,370 won level against dollar first time in 13 years and five months. The strong dollar has been negatively affecting Korean stock market - KOSPI collapsing again under 2,400 won level after a month.

The won-dollar exchange rate closed on Monday with 1,371.4 won level in Seoul foreign exchange market – the strongest dollar since the 2009 financial crisis (1,379.5 won on April 1, 2009). During the day, the won even plunged to the 1.375 level. The dollar index (DXY), which shows dollar’s value against six key currencies, broke through 110, first since June 19, 2002 (110.19).

The steep dollar increase is similar to the trend that was seen during the 2009 financial crisis. The won was 1,302.4 against a dollar on Aug. 12, but dropped by almost 70 won in just three weeks. ON Monday, the Korean authorities attempted to prevent further plunge by signaling interference into the market but failed to stop the downward pressure.