Anchor: Due to instabilities in the international financial market, the won-dollar exchange has surged to a near six-year high. The Bank of Korea governor expressed concerns, saying that situations at home and overseas have become even more unclear.
Our Park Jong-hong reports.

Report: On the foreign exchange market Friday, the South Korean won depreciated seven won against the U.S. dollar to finish at one-thousand-234-point-four won, marking the weakest level in five years and eight months.

Once during the day's trading, the won-dollar rate rose to around one-thousand-239 won.

The slide in local currency value had continued the entire week. On Monday the foreign exchange market opened at around one-thousand-206 won per the greenback. Friday's instability came as the European Central Bank brought up risks of downward pressure and Saudi Arabia objecting to cutting down oil output caused jitters.

Experts also blamed geopolitical risks spurred by sour inter-Korean relations for fueling the weak South Korean currency.

The rise in the won-dollar exchange rate, or in other words a weak valued Korean won, is actually a double-edged sword.

On one hand, a weak won boosts price competitiveness of Korean goods overseas but on the other hand, a sudden spike in the rate can make it harder for exporters to manage currency risks.

Bank of Korea Governor Lee Ju-yeol on Friday warned that the economic uncertainties at home and abroad are greater now than ever.

But he made it clear that domestic banks are able to absorb any shock waves and projected that banking operations catering to households and corporations will continue on a smooth path.
Park Jong-hong, KBS World Radio News.