Run On Several Currencies
But it could be worse. Although the South Korean won have stabilized somewhat in recent days after the dramatic plunge last week, several other smaller currencies are experiencing dramatic declines. The South African rand has lost more than a quarter of its value against the U.S. dollar in just little more than a month, while the Brazilian Real and the Mexican Peso have both lost roughly a fifth of their value in just about 5 weeks.
To a large extent, these dramatic declines are the result of the fact that these countries are commodity exporters. But given the decline of currencies like the South Korean won (which is a big importer of commodities) and the Swedish krona, it seems that there is also a general flight of capital away from currencies perceived (whether justifiably from a fundamental perspective or not) to be risky.