By Kim Yon-se
Staff Reporter


The won to dollar exchange rate Wednesday fell below the 1,130 mark closing at 1,128.90 won, down 4.60 won from the day before. This is the lowest in four years since the 1,128.50 reported on October 20, 2000.

Foreigners are selling dollars because they are concerned about the Korean government’s foreign exchange policy. ``There is growing belief that policymakers have abandoned intervening in the market to control the value of the won,’’ a foreign currency analyst said.

Many brokers predict the won will value around the upper 1,100 range to the dollar by next January because of the weakness of the dollar due to the United States’ rising deficits.

``This is the consensus of many international investment banks that predict the value of Korean currency against the U.S. dollar down the road,’’ an analyst reported.

The yen pared losses against the dollar in the Tokyo market after no deaths were reported in the latest of the series of earthquakes in central Japan.

The Japanese yen traded at 106.85 at 2:35 p.m. in Tokyo to the dollar, having fallen as low as 107.15, according to electronic foreign exchange dealer EBS. It traded at 106.73 late yesterday in New York.

The yen was also was at 136.27 to the euro, versus 136.26.

Starting in March, the won gained strength on the back of a massive inflow of foreign stock funds and the appreciation of the yen.

After peaking at 1,180.8 won per dollar on March 12, the won appreciated to 1,175.3 on March 15, 1,164.1 on March 17, 1,154.6 on March 24, 1,146.6 on March 31 and 1,141.2 on April 1, according to the Bank of Korea.

kys@koreatimes.co.kr