The sinking won, some insight

There was a great posting over at the Marmot's Hole about the falling won.  It is noted:

It’s no secret that the won’s value is falling like it’s going out of style. It seemed as if the bottom fell out last Thursday, where during the trading day the won dipped as low as 1,484.90 per dollar, the lowest level since the Asian financial crisis of 1998, before finally rebounding to close at 1,383.30. The one month tally? A drop of over 25% from 1,101.3 to 1,385.0

He notes that the cause of the won's drop is more than just the recent financial crisis:

The simple fact of the matter is that Koreans are too fond of exchanging their won for other currencies (as evidenced by the current account deficit).