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The won fell against the U.S. dollar on the Seoul foreign exchange market on Thursday, at one point dipping to as low as W1,050. The Korean currency ended the day at W1,049.6 to the dollar, down W23.5 from Wednesday's close.
Thursday's exchange rate marks a 30-month low for the won since Oct. 25, 2005, and the seventh consecutive business day that the currency has slipped against the dollar, down a total of W53.5 since April 28.
The won's fall was the result of high demand for the greenback, with refiners needing more dollars to buy crude oil amid surging international oil prices and foreigners buying the dollar to repatriate dividends to their home countries, experts said.
Hong Seung-mo, an official with Shinhan Bank, said, "The won tumbled against the dollar as oil refiners and importers snapped up the dollar to settle bills. If the current trend continues, we could see the won dip to as low as W1,080 per dollar."
Other pundits said that policy makers' remarks in favor of a weaker won also led the currency to fall against the dollar.
When reporters asked what he thought of the falling won on Thursday, Strategy and Finance Vice Minister Choi Joong-kyung said it was a "natural consequence" of the current account deficit and an imbalance between supply and demand. Bank of Korea Governor Lee Seong-tae also said Thursday that a weaker won against the dollar "does more good than harm" for the growth of the economy.
(englishnews@chosun.com )
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