(LEAD) S. Korea to take steps to stabilize currency market: official

(ATTN: UPDATES with closing prices in 3rd para; ADDS details at bottom)

SEOUL, Sept 29 (Yonhap) -- Growing volatility in the local currency market is
"excessive" and South Korea will take necessary actions to stabilize it, a senior
finance ministry official said Monday.
"The sharp volatility in the won-dollar exchange rate is determined to be
excessive and we will take necessary action to stabilize the local currency
market," Choi Jong-ku of the ministry's international financial division told
reporters.
The verbal intervention failed to support the won, which ended down 28.3 won
against the U.S. dollar at 1,188.8 won, the lowest in 57 months. The local
currency has lost more than 25 percent against the greenback since the start of
this year.
The sharp decline is attributed to increased demand for the dollar from importers
and foreign investors who needed to convert the proceeds from their sell-off in
the local markets into the safer currency, dealers say.
kokobj@yna.co.kr
(END)