Recently, as confirmed by the official figures shared, the South Korean Won managed to rapidly rise and hit a 16-month high, going beyond all the key resistance levels as traders heavily cashed in on a weakened dollar, which hurt the central bank's attempts to cap the gains via speculated interventions.

The local authorities are now most likely to continue intervening in the domestic foreign exchange market as they are worried that a strengthened Won value could sap an export-led recovery of the economy. Traders, however, have shared that they would not be able to halt the Won's rise.

"The only ones that could provide an upward momentum to the dollar are the authorities. But they are showing no intention of reversing this trend, so investors seem quite confident about selling the dollar. Players aren't much interested in covering their short (dollar) positions", said a local bank trader.

On rapid selling by offshore traders and investors, the US dollar managed to take out KRW 1,130 and KRW 1,120. The overseas players seem to be targeting the KRW 1,100 level.