By Kim Kyoungwha and Judy Chen
Sept. 5 (Bloomberg) -- South Korea's won fell, headed for its biggest weekly loss since August 1998, on speculation global investors are shunning the nation's assets as Asia's fourth- largest economy sputters.
It will be the sixth straight week the Korean currency has declined, the longest losing streak since April 2001, and takes this year's loss to 18 percent, the worst performance in Asia. Gross domestic product increased 0.8 percent in the second quarter, the slowest pace in more than a year, central bank data confirmed today.
``Market players are cautious about unrest in global financial markets which is strengthening sentiment for the dollar,'' said Kim Sung Soon, a currency dealer with Industrial Bank of Korea in Seoul. ``Importers' deals and stock sales are knocking the wind out of the won.''
The currency fell 0.9 percent to 1,139.20 per dollar as of 9:45 a.m. in Seoul, extending this week's decline to 4.4 percent, according to Seoul Money Brokerage Services Ltd. The won will trade between 1,128 and 1,145 today, Kim said.
Overseas investors sold more Korean shares than they bought on all but four trading days since the start of last month, Korea Exchange data shows.
To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net; Judy Chen in Shanghai at xchen45@bloomberg.net.
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