Against the US dollar, South Korea’s currency Won has fallen to a near 13-year low.
The Won closed at 1,301 Won per dollar on fears of an economic slowdown and tighter monetary policies. Compared to the previous day, the South Korea currency has broken 4.50 Won. This is the lowest closing price since July 13, 2009. At that time the won was closed at 1,315 won per dollar.
According to the news agency Yonhap, Finance Minister Chu Kyung Ho said efforts would be made to stabilize the currency. He said that the government would make policy efforts to correct the balance of demand and supply in the market.
After this statement of Chu, the Won recorded a slight correction during trading and for some time it came below the level of 1,300 Won. In the afternoon, however, the won broke under the pressure of selling by foreign investors in the South Korea stock market.
On Thursday, the South Korean stock market fell for the second consecutive day and fell to a one-year low. The Kospi closed at 2,314.32 points, down 28.49 points, or 1.22 per cent. Foreign investors sold shares worth Won 296.3 billion.
The South Korean government and the Bank of Korea have said they will keep a close watch on the financial market and do everything possible to stabilize it if needed.
In May, South Korea’s retail inflation jumped 5.4 percent year-on-year.