The South Korean government has stepped up its fight to prop up its weak currency to stem inflationary pressures but analysts are sceptical about the impact of its massive dollar selling.

Dealers suspect authorities sold about $2.5bn on Tuesday, pushing the local currency up 1 per cent to Won1,032.70 against the dollar. The won has been one of the worst-performing currencies in Asia this year, losing more than 10 per cent of its value against the dollar owing to oil importers’ high demand for the greenback.