Posted December. 02, 2004 23:06,
The exchange rate of Korean currency against the U.S. dollar dropped (won value increased) for two consecutive days, closing in on the 1040 won barrier.
On December 2, the Seoul Foreign Exchange Market closed with won-dollar exchange rate at 1041.5 won (4.5 won depreciation).
This rate is the lowest since November 19, 1997 (1035.5 won).
Todays rate, which opened at 1045.5 won in markets, steadily depreciated and even dropped to 1041.0 won during the morning. However after foreign exchange authorities intervened and struggled to put a halt to the falling dollar, the market closed with the rate slightly rising.
Noh Sang-chil, manager of Kookmin Banks foreign currency team, said, Although there werent many dollars out for sale, the ones that were for sale steadily overwhelmed the number of dollars bought, eventually bringing the value of the dollar down. Also, even though quantity of the authorities intervention was not big, they were successful in defending the 1040 won barrier.
Although foreign exchange market officials hinted of market intervention from foreign nations such as Japan, China, and Europe, the strong yen and euro are expected to continue to bring ambiguity to the Seoul Foreign Exchange Market.