ID :
23749
Fri, 10/10/2008 - 19:30
Auther :
Shortlink :
http://m.oananews.org//node/23749
The shortlink copeid
Won rises for 2nd day on intervention speculation
(ATTN: CHANGES slug, headline, lead; ADDS more details throughout)
SEOUL, Oct. 10 (Yonhap) -- The South Korean won rose for a second day on Friday
on speculation that foreign exchange authorities will intervene in the market to
stem the currency's further drop, dealers said.
The local currency closed at 1,309.00 to the greenback, up 70.5 won from
Thursday's close. It fell to as low as 1,460.00 won during the session, the
weakest since April 1998.
The won bounced back in afternoon trading, however, on word that the government
will crack down on speculative forces, and may even step in to intervene in the
market.
Rumors that financial regulators will require banks to submit records of their
daily foreign-exchange transactions with customers also helped the won rally.
"Dollar selling, in particular by exporters, intensified in afternoon trading,"
said Park Sang-chul, a currency dealer at Woori Bank.
The won has slumped as foreign investors have continued to withdraw from the
local stock market and the country's trade balance has worsened. The currency
has lost more than 35 percent against the dollar this year.
Overseas investors sold more of the country's shares. The KOSPI, the country's
key stock index, plunged 4.13 percent to close at 1,241.47. At one stage in
morning trading, the index was down 9 percent to its lowest level in nearly three
years.
The Dow Jones industrial average closed down 678.91 points, or 7.33 percent, at
8,579.19 on Thursday, marking the first time since May 2003 that the Dow traded
below 8,600.
A global credit crunch has created a dollar liquidity shortage for local banks
and importers, further fanning demand for the greenback.
Experts said that increased concerns over an economic slowdown may continue to
prod market participants to scramble towards dollar buying.
On Tuesday, Finance Minister Kang Man-soo said that global financial turmoil is
beginning to hurt the economy. The finance ministry said on the same day that
global financial woes may cause the country to fall short of its economic growth
target of 4.7 percent.
SEOUL, Oct. 10 (Yonhap) -- The South Korean won rose for a second day on Friday
on speculation that foreign exchange authorities will intervene in the market to
stem the currency's further drop, dealers said.
The local currency closed at 1,309.00 to the greenback, up 70.5 won from
Thursday's close. It fell to as low as 1,460.00 won during the session, the
weakest since April 1998.
The won bounced back in afternoon trading, however, on word that the government
will crack down on speculative forces, and may even step in to intervene in the
market.
Rumors that financial regulators will require banks to submit records of their
daily foreign-exchange transactions with customers also helped the won rally.
"Dollar selling, in particular by exporters, intensified in afternoon trading,"
said Park Sang-chul, a currency dealer at Woori Bank.
The won has slumped as foreign investors have continued to withdraw from the
local stock market and the country's trade balance has worsened. The currency
has lost more than 35 percent against the dollar this year.
Overseas investors sold more of the country's shares. The KOSPI, the country's
key stock index, plunged 4.13 percent to close at 1,241.47. At one stage in
morning trading, the index was down 9 percent to its lowest level in nearly three
years.
The Dow Jones industrial average closed down 678.91 points, or 7.33 percent, at
8,579.19 on Thursday, marking the first time since May 2003 that the Dow traded
below 8,600.
A global credit crunch has created a dollar liquidity shortage for local banks
and importers, further fanning demand for the greenback.
Experts said that increased concerns over an economic slowdown may continue to
prod market participants to scramble towards dollar buying.
On Tuesday, Finance Minister Kang Man-soo said that global financial turmoil is
beginning to hurt the economy. The finance ministry said on the same day that
global financial woes may cause the country to fall short of its economic growth
target of 4.7 percent.
