South Korean currency is facing trouble against dollar due to the offshore demand by the investors on Monday. This has happened in spite of an intervention by the central bank to slow down the currency gain.

The Bank of Korea has bought dollars from KRW 1,085 to KRW 1,088 in the trade. This report has been confirmed by five Seoul based traders. Out of these 5, two have bought around $500 million.

This move came up after local authority suspected of intervening in the market on March 31. On this day the central bank purchased dollars for KRW 1,095. This has been confirmed by the traders.

"The weakness of the dollar against the other currencies, except the yen, is the main reason for the won's recent strength," said Byeon Ji-young, a currency analyst at Woori Futures. Unless some definite downward correction of local stocks or strong risk aversion plays in favour of the dollar, "players will likely continue to place short orders on the dollar", she added.

She mentioned that dollar rate has bounced to KRW 1,100 this week and is an alarming.

According to the market analyst, Korea treasury bonds faced minor changes in spite of this turmoil.