Won Nosedives to 13-Year Low on Fed's Rate Warnings

The Korean won plummeted to a 13-year low of W1,350 to the U.S. dollar on Monday.

The won plunged to W1,350.80 at one point in trading but closed at W1,350.40, down W19.10 from the previous session and the biggest drop so far this year.

The tumble came after U.S. Federal Reserve Chairman Jerome Powell said last Friday that interest rate hikes will continue to tame runaway inflation. "We will keep at it until we are confident the job is done," he warned.

The comments sent the greenback rising even more as bourses around the world tanked while investors fled to safe-haven assets.

Here the benchmark Korea Composite Stock Price Index fell 2.18 percent to 2,426.89 points and the junior Kosdaq 2.81 percent to 779.89 points.

Verbal intervention by forex authorities on Monday was not enough to keep the won from weakening further.

Vice Finance Minister Bang Ki-sun said, "The government will step up efforts to stabilize the market," but so far that has had little effect and the won looks bound to weaken further.