The South Korean won plunged almost 5percent to 1,395.00 won against the U.S. dollars on Wednesday, reaching its lowest level since the outbreak of the Asian financial crisis a decade ago, according to the Yonhap news agency.
Yonhap said dollar demand is still strong and the currency movement is volatile as the global credit crunch is forcing local banks and companies to meet their dollar needs..
The South Korean won, which has already lost more than 30 percent so far this year, could even breach the 1,400-won mark this week due to further capital flight amid country's aggravating balance of trade and a slumping stock market, it said.
Despite a series of market stabilization measures taken by the South Korean government, investors concern over the credit crunch shows no signs of abatement.
Meanwhile, the country's currency market has been facing dollar shortage problems as banks and companies are rapidly converting won into dollars on concerns over a financial crisis.
Source: Xinhua
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