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(LEAD) Korean won dips to 27-month low against U.S. dollar

Finance 16:01 May 03, 2019

(ATTN: RECASTS 3rd para to correct the closing price)

SEOUL, May 3 (Yonhap) -- The Korean won continued to weaken against the U.S. dollar Thursday, hitting the lowest value in 27 months, jibing with other currencies' moves relative to the greenback.

The country's weaker than projected economic performance might have also contributed to the local currency losing ground, traders said.

The Korean won closed at 1,170.00 won against the U.S. dollar, down 4.30 won from Thursday's close, marking the lowest since January 31, 2017.

The greenback continued to strengthen globally in the past few weeks, especially after the Federal Reserve kept its policy rate frozen early this month while also dismissing the possibility of a rate reduction in the near future.

"There is no specific reason leading to the strengthening of the U.S. dollar," said Baek Seok-hyeon, a researcher from Shinhan Bank, noting that market expectations for a strong dollar may have also pushed up demand for the hard currency.

Poorer-than-anticipated performance by Asia's fourth-largest economy may have also contributed to the weakening of the won against the U.S. dollar.

The Bank of Korea earlier said the economy contracted an estimated 0.3 percent in the first quarter from three months earlier, marking the worst on-quarter performance since the fourth quarter of 2008.


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