Won to further decline

Won to further decline

SEOUL (AFP): The relentless depreciation of the South Korean won against the dollar is expected to continue through next year, but the state is expected to intervene to stem the trend, financial experts said yesterday.

The won has weakened to a record 840 to the U.S. dollar, down from 774.7 won at the end of last year, driven by the nation's snowballing trade deficit together with the dollar's strength against other foreign currencies.

The Korea Development Bank predicted the won would weaken further to the 855-860 won level next year, on expectations of a trade imbalance in 1997 and a reduced inflow of foreign capital due to fears of foreign exchange losses.

With the forecast sharp fall in value of the won, a high- ranking official at the Bank of Korea told reporters Monday that the central bank remained committed to stabilizing the won-dollar exchange rate.