Won Falls to Lowest in 5 Years

The Korean won fell to its lowest level against the U.S. dollar in more than five years. The won lost W10.3 against the greenback to close at W1,203.7 on Monday, the lowest since July 2010.

At one point in trading it plunged as low as W1,207.1.

The Korean currency market has been jittery amid expectations of a U.S. rate hike this year, while demand for the dollar soared Monday on expectations that British retail giant Tesco will cash in around W4 trillion of the proceeds from its sale of supermarket chain Homeplus to Korea's MBK Partners (US$1=W1,205).

The Bank of Korea projected volatile forex market conditions until the U.S. Fed holds its monthly meeting on Sept. 16 and 17. If it hikes interest rates for the first time in six years and nine months, the dollar is expected to strengthen further.