For the first time in 13 years, South Korea's currency on Thursday dropped below the psychological threshold of 1,3-hundred won to the U.S. dollar on concerns about further rate hikes by the Federal Reserve and the risk of continued outflows of capital.
The local currency closed at 1,301.8 per dollar, up 4.5 won from Wednesday.
The Korean currency lost ground quickly after the market opened.
The last time the exchange rate was above 13-hundred was in mid-2009.
South Korea's finance minister said today that the authorities will take action if volatility continues in the currency.