The South Korean won on Monday dove against the world's reserve currency as speculation mounted that the central bank of the U.S. will continue cutting monetary stimulus, according to Bloomberg.
The U.S. Federal Reserve opted to cut stimulus measures by $10 billion last Wednesday, prompting the monetary unit of the Asian nation to lose value on Monday. Shipments from South Korea to China, the top destination of Korean exports, fell last month.
"Dollar demand was strong from overseas investors and some local exporters were selling the greenback as the won weakened," currency dealer Yun Se Min with Busan Bank told Bloomberg on Monday.
Since Wednesday of last week, the won has dropped about 1.3 percent against the greenback. South Korean markets were closed on Thursday and Friday while the nation observed the Lunar New Year, so Monday marked the first opportunity for the won to confront the Fed's stimulus decision.
The won's losses on Monday mark the biggest fall in more than seven months against the U.S. dollar, according to The Business Times.
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