ID :
21469
Fri, 09/26/2008 - 20:45
Auther :
Shortlink :
http://m.oananews.org//node/21469
The shortlink copeid
S. Korean currency hits 49-month low against dollar
SEOUL, Sept. 26 (Yonhap) -- The South Korean currency fell to a 49-month low
against the U.S. dollar on Friday as falling stock prices and uncertainty over
the passage of a U.S. bailout plan fueled dollar demand, dealers said.
The local currency closed at 1,160.50 won to the dollar, down 2.3 won from
Thursday's close and the lowest level since Aug. 13, 2004 when it finished at
1,162.3O won against the greenback. The won has lost more than 19 percent versus
the dollar so far this year, putting upward pressure on already-high inflation.
"Toward the market close, investors covered the short position amid falling stock
prices and growing uncertainty over the passage of a U.S. plan to rescue its
financial system," said Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
South Korea's currency market has been suffering from a dollar shortage as banks
and companies are rushing to the safer U.S. dollar on concerns over a financial
crisis sparked by the collapse of Lehman Brothers Holdings Inc.
South Korea's Finance Ministry said earlier in the day that it will inject at
least US$10 billion into the local won-dollar swap market in an effort to calm
the turmoil and provide added liquidity.
Choi Jong-ku, head of the ministry's international financial bureau, said that
the government has decided to supply dollars to the swap market by using the
nation's foreign-exchange stabilization fund worth of around $55 billion from
this month until earlier next month.
"The plan will likely help ease some jitters in the swap market, but as long as a
global credit squeeze persists, the won is likely to be under downward pressure
versus the greenback next week," Jeon said.
Reports over a near agreement over the Bush administration bailout plan drove
overnight rallies on Wall Street but the optimism was dashed hours later as key
presidential candidates reportedly failed to iron out their differences over what
government officials see as a crucial to avoid an economic recession.
South Korea's key stock index fell 1.68 percent to 1,476.33. Foreign investors
unloaded a net 166.6 billion won ($143.5 million) worth of local stocks on the
main bourse.
against the U.S. dollar on Friday as falling stock prices and uncertainty over
the passage of a U.S. bailout plan fueled dollar demand, dealers said.
The local currency closed at 1,160.50 won to the dollar, down 2.3 won from
Thursday's close and the lowest level since Aug. 13, 2004 when it finished at
1,162.3O won against the greenback. The won has lost more than 19 percent versus
the dollar so far this year, putting upward pressure on already-high inflation.
"Toward the market close, investors covered the short position amid falling stock
prices and growing uncertainty over the passage of a U.S. plan to rescue its
financial system," said Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
South Korea's currency market has been suffering from a dollar shortage as banks
and companies are rushing to the safer U.S. dollar on concerns over a financial
crisis sparked by the collapse of Lehman Brothers Holdings Inc.
South Korea's Finance Ministry said earlier in the day that it will inject at
least US$10 billion into the local won-dollar swap market in an effort to calm
the turmoil and provide added liquidity.
Choi Jong-ku, head of the ministry's international financial bureau, said that
the government has decided to supply dollars to the swap market by using the
nation's foreign-exchange stabilization fund worth of around $55 billion from
this month until earlier next month.
"The plan will likely help ease some jitters in the swap market, but as long as a
global credit squeeze persists, the won is likely to be under downward pressure
versus the greenback next week," Jeon said.
Reports over a near agreement over the Bush administration bailout plan drove
overnight rallies on Wall Street but the optimism was dashed hours later as key
presidential candidates reportedly failed to iron out their differences over what
government officials see as a crucial to avoid an economic recession.
South Korea's key stock index fell 1.68 percent to 1,476.33. Foreign investors
unloaded a net 166.6 billion won ($143.5 million) worth of local stocks on the
main bourse.
