The South Korean won hit a near 11-year closing low against the dollar on Tuesday as more investors hunted safer assets on mounting worries about the global financial sector and weakening equity markets. "The (won's) next target could be 1,550 (per dollar) on uncertainties about US policies to rescue the banking sector and any possible fresh shocks," said Kim Jae-eun, an economist at Hana Daetoo Securities.
The South Korean currency settled at 1,516.3, compared with Monday's domestic close of 1,489.0. Tuesday's closing was the weakest since 1,521.0 on Mar. 13, 1998. The won came under further pressure as North Korea said it was preparing to launch a satellite on one of its rockets, which analysts have said could actually be a test-launch of its longest-range missile.