Korean currency dips to 1300 won to dollar

The value of the won once plunged to a level below 1,300 to the dollar Monday, but the government said it still had no plans to intervene in the foreign exchange market to head off its decline. Meanwhile, analysts warned that the violent fluctuation in the won`s value threatened to spark a price spiral and dampen industrial activity.

In the Seoul foreign exchange market Monday, the won`s value fell 6.9 won to close at 1,299.20. The level was the highest since the Korean currency traded at 1,304.50 won to the greenback on Nov. 17, 1998. At one time Monday, dollars were selling for 1,300.40 won, but prices later edged back due to a government warning against the won`s steep fall and declines in the Japanese yen`s value against the dollar.

Park Hyeon-Jin witness@donga.com