Forex News

The South Korean won continued to decline against the U.S. dollar today almost completing a third week of drop as the country’s central bank reduced the interest rate to the record low value.

The South Korean won continued its decline against the U.S. dollar today despite the other Asian stocks rebound caused by the U.S. government’s intentions to bail-out Citigroup.

The Korean won reached the lowest level against the U.S. dollar since 1998 today as the country’s stock market fell for the eight day in a row and the foreign investors continued to pull-out the funds.

The South Korean won continued its decline against the U.S. dollar after the Bank of Korea unexpectedly cut the interest rates by the record value of 75 basis points today, struggling against the worst crisis since 1998 Asian financial crash.

The South Korean won rose today against the U.S. dollar, after posting a largest drop in more than 10 years yesterday, as the financial markets showed growth in U.S. and Asia.

The Asian currencies declined today against the U.S. dollar as the delay of the U.S. financial rescue plan may diminish the attractiveness of the risk-ridden regional currencies in conjunction with the economic output decline in Asia.

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.