By Judy Chen
Jan. 19 (Bloomberg) -- South Korea’s won fell, reversing earlier gains, on concern the worsening global slowdown will prevent the government from achieving its economic growth target.
The currency has plunged 25 percent in the past six months, making it the worst performer among the 10 most-active currencies in Asia outside Japan. South Korea’s President Lee Myung Bak may reshuffle his Cabinet as early as today to replace Finance Minister Kang Man Soo, the Dong-a Ilbo reported, without saying where it obtained the information.
“Sentiment is currently very weak over the economic outlook for the first half of 2009,” said David Mann, senior foreign-exchange strategist at Standard Chartered Plc. But “we expect a wide range for the won rather than a weakening trend.”
The won dropped 0.5 percent to 1,364.55 per dollar as of 11:08 a.m. in Seoul, according to Seoul Money Brokerage Services Ltd.
Economic growth this year is likely to be less than the 2 percent forecast by Bank of Korea, Vice Finance Minister Bae Kook Hwan said in Seoul on Jan. 15.
To contact the reporters on this story: Judy Chen in Shanghai at xchen45@bloomberg.net
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