S. Korean currency plunges on U.S. bailout rejection

SEOUL, Sept. 30 (Yonhap) -- The South Korean currency tumbled against the U.S.
dollar early Tuesday, spooked by the U.S. Congress' rejection of an emergency
rescue plan many observers expect would have saved staggering global financial
markets, dealers said.

The local currency started below the 1,200 won versus the greenback, trading at
1,223.6 won as of 9:15 a.m., down 34.8 won from the previous day's close. The won
hit a 57-month low against the dollar on Monday, and has lost around 30 percent
versus the dollar since the start of this year.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) also tumbled
nearly 5 percent to trade at 1,386.33 as of 9:15 a.m.
On Monday, the U.S. House of Representatives turned down the government-led
US$700 billion emergency rescue proposal designed to buy bad debts from financial
institutions. The decision sent shockwaves across the globe, raising fears that
instability in the financial sector could cascade into the real economy.
South Korea's currency market has been suffering from a dollar shortage, as banks
and companies are rushing to the safer greenback on concerns over a financial
crisis sparked by the collapse of investment giant Lehman Brothers Holdings Inc.