KRW ends at fresh 13-year low vs USD despite verbal intervention

[Photo by Yonhap]

The Korean won continued to slide to new low levels of the global financial crisis in 2009 Tuesday despite verbal intervention from authorities.

The U.S. dollar ended Tuesday at 1,345.5 won, up 5.7 won from the previous day and highest closing since 1,356.80 won on April 28, 2009.

The U.S. dollar that shot up to 1,345.2 won in the morning eased to 1,342.50 won midday upon verbal intervention. President Yoon Suk-yeol made a rare mention of the foreign exchange movement, saying the government should take measures to lessen the negative impact from excessively weakening in the Korean won.

Pointing to the fall of the won from global-wide U.S. dollar strengthening, Yoon said the government must take care so that the people are not too worried about a weaker won fanning import prices and damaging the current-account balance.

Soon after Yoon¡¯s remark to reporters, the financial authority issued an official verbal statement at 9:24 a.m., warning authorities were ¡°closely watching if there are speculative forces from overseas¡± behind the dollar-won exchange rate movement.

The dollar however defied interventionist warning to finish the day higher.

The dollar on Monday zoomed past 1,330 and 1,340 mark, visiting the level for the first time since April 2009 as the greenback regained strength against currencies around the world on hint of lengthier tightening cycle from the minutes of the U.S. Federal Open Market Committee.

[¨Ï Maeil Business Newspaper & mk.co.kr, All rights reserved]