South Korea Won Falls a Sixth Day as Economic Slowdown Quickens

By Kim Kyoungwha

Nov. 18 (Bloomberg) -- South Korea's won fell for a sixth day on concern the global recession is deepening, cutting demand for the nation's exports and assets.

The currency declined to the lowest level in three weeks, extending this year's loss to 34 percent, Asia's worst performance. Funds dumped more Korean shares than they bought for a sixth day, with the Kospi stock index falling 7 percent over the same period, according to Korea Exchange.

``It may take some time until the market sees stability because fears of a global recession are fueling sentiment for a strong dollar,'' said Kim Sung Soon, a currency dealer with Industrial Bank of Korea in Seoul. ``A sharp surge in the greenback should be limited given caution against intervention.''

The won fell 0.5 percent to 1,416.20 per dollar at 9:34 a.m. in Seoul, according to Seoul Money Brokerage Services Ltd. Central banks intervene in the currency market by either buying or selling foreign exchange.

To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net.