The South Korean won lost value on Tuesday against the world's reserve currency as it plunged toward its lowest value in 14 days against its cross-Pacific rival, according to Bloomberg.
Intensifying fighting in Iraq between the national military and Sunni Muslim militants dragged down the won as the U.S. considered methods of intervening on the government's behalf. Policy makers with the U.S. Federal Reserve begin two days of meetings on Tuesday, which also is likely to impact the performance of the won this week.
"There seems to have been some unwinding of positions betting for a stronger won as Asian currencies weakened," currency trader Kim Dong Wook with Kookmin Bank in Seoul told the news outlet on Tuesday. "It seems like a technical movement, not a change in trend."
The won dropped about 0.2 percent against the U.S. dollar on Tuesday after marking gains of about 10 percent during the past year. The won marked its highest mark in nearly six years against its rival one week ago.
Exporters' growing demand for the won helped prevent steeper losses on Tuesday, according to Reuters.
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