Won hits weakest level since global financial crisis

The dollar-won exchange rate surged to the 1,550s level on Monday, with the won weakening to it's lowest level against the dollar since the global financial crisis.

The won was trading at 1,555.2 against the dollar at 9 a.m. on Monday, weakening by 16.1 won from the previous session's daytime close. 

The opening marked the won's weakest level since March 6, 2009, when the currency opened at 1,590 won per dollar during the global financial crisis.

As the won's value tumbles, the government and Bank of Korea made a joint verbal intervention stating they will take strong action against excessive volatility in the foreign exchange market.

"Recent volatility in the foreign exchange market appears to have been amplified not only by supply and demand factors but also by speculative currency trading, including non-deliverable forwards," the government and central bank said. The statement came from Lee Hyung-ryul, head of the Ministry of Economy and Finance's International Finance Bureau, and Yoon Kyung-soo, director general of the central bank's international department.

"We will not tolerate excessive volatility or one-sided market movements that are not supported by economic fundamentals, and will respond firmly."

BY JEONG HYE-JEONG, LEE TAE-HEE [[email protected]]