Forex News

The South Korean won declined to its lowest level since November 2005, as the country’s central bank said that the weaker currency will be helping against the economic stagnation.

According to the Finance Minister of Japan, Fukushiro Nukaga, Japan, South Korea and China are in the process of creating the mutual pool of $80 billion foreign currency reserves in order to protect the Asian financial markets in case of a speculative attacks.

The South Korean won fell sharply against the U.S. dollar this week and reached its monthly low against the USD today despite the very weak dollar’s positions and the bullish trend in the Chinese yuan, which is the one of the dominating Asian currencies.

The South Korean currency is heading for more losses as the government is searching for ways to support the exporting companies and the economic growth.

Today the majority of the Asian currencies, including the South Korean won, fell down on the Forex market as the investors expected that the global financial turmoil will decrease the capital inflow into the emerging Asian economies.

South Korean won was among the other Forex traded currencies that triumphed over the U.S. dollar during this week as the USD was losing its ground on many areas. But today USD/KRW corrected from its almost two-month bottom.

Almost all Asian currencies, especially high-yielding ones, took a massive hit this week, with the highest drops being near the end of the week. South Korean won has posted the largest weekly decline in almost two months.