Iceberg

Some quotes from a Forbes.com article, which you can read here. (Emphasis mine)

The South Korean won rose 1 percent against the dollar on Thursday, ending a four-session losing streak in its most volatile day for a decade as the central bank cut base rates and authorities were spotted selling dollars.

The local currency is expected to find further support on coordinated actions to ease a global credit crunch and on hightened [sic] caution over possible dollar-selling intervention by the country’s foreign exchange authorities, analysts said.

But the won is likely to remain weak on persistent worries about a global credit crisis and possible recession, they added.

‘The won may rebound further, probably to as much as to 1,200 (per dollar), as global authorities may announce further measures during the G7 meeting later this week,’ said Jeon Seung-ji, an analyst at Samsung Futures Inc.

‘Still, no measures can solve the current situation,’ she added.

Still, many market players doubt the interest rate cut could support the won long, with moves in global financial markets likely to decide the currency’s direction.

If U.S. stock markets fall further tonight, the won will head south again. Unless we see signs of stabilisation in global financial markets, the won’s direction will not change,’ said an analyst at a local futures firm.

(The Dow Jones fell more than 600 points last night/this morning.)

South Korea’s top policy makers kept warning against expectations for further falls in the currency.

Hold on to your hats. It’s going to be a bumpy ride.