The South Korean won weakened today as Forex traders shun the currencies of emerging markets because of worries about the effect of the crisis in Europe on the global economy.
Analysts think the gains of the won were to big to sustain, resulting in the current decline. South Korean Finance Minister Bahk Jae Wan said in parliament today that the nation should intervene in the currency market only when necessary to ease an adverse effect of the exchange rate on the economy. It looks like the Forex market has done the job of weakening the currency without the involvement of the government.
USD/KRW advance from 1,133.2999 to 1,144.6000 today as of 17:05 GMT.
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