By Kim Tae-gyu
Staff Reporter
After the government failed to intervene, Monday, the domestic currency dived to an 11-year low to close at 1,513 won per dollar, down 18 won from the previous close.
The last time the rate closed below the 1,500 won level was March 13, 1998, when it reached 1,521 won.
Share prices also crashed as the benchmark KOSPI dipped 33.59 points, or 3.35 percent, to end at 970.14. The tech-loaded Kosdaq lost 5.62 points, or 1.94 percent, to 284.50.
``Falling share prices dragged down the won's value. In the near future, the won is expected to remain weak,'' said a dealer at a local bank who declined to be named.
``I am afraid that the won-dollar rate would overshoot because the psychologically important 1,500 has been breached,'' he said.
The won-dollar rate started at 1,478 won per dollar, up 17 won from last Friday, but started to rise in tandem with the decline in share prices.
In particular, the won depreciated toward the end of the market as the government, which has played a crucial role in stabilizing the exchange rate on the back of its $210 billion dollar reserves, did not proactively intervene.
Meanwhile, the stock market also nose-dived across the board.
The world's biggest maker of memory chips and flat-panel displays, Samsung Electronics dropped 0.45 percent to close at 440,000 won and its rival, Hynix Semiconductor, plunged 12.16 percent to 5,850 won.
The construction business was no exception. Daewoo Engineering & Construction, the nation's foremost builder, shed 5.66 percent to close at 7,500 won while Hyundai Engineering & Construction, the runner-up player, also declined 8.37 percent to 10,400 won.
A total of 458.78 million shares worth 4.7 trillion won changed hands and losers overwhelmed winners 601 to 223, with nine having reached their 15-percent daily limit down.
Foreigners posted net sales of 84.8 billion won while institutions also sold a net 51.5 billion won. Individual investors netted 129.2 billion won in purchases.