Won surges on expectations over state intervention

SEOUL, Oct. 13 (Yonhap) -- The South Korean won jumped against the U.S. dollar
early Monday morning as investors dumped the greenback on expectations the
government might step up intervention to support its currency and global efforts
to tackle financial turmoil might help increase liquidity in the local market,
dealers said.
The won was trading at 1,250.25 won to the greenback as of 9:34 a.m., up 58.75
won from Friday's close. On Friday, it fell to as low as 1,460.00 won during the
session, the weakest since April 1998, but ended the volatile session higher for
a second straight day.
A recent global credit crunch originating in the United States has created a
dollar liquidity shortage for local banks and importers here, further fanning
demand for the greenback. The won has lost more than 30 percent since the start
of this year.
Experts said that increased concerns over an economic slowdown may however
continue to prod market participants to scramble to buy dollars.
On Saturday, Finance Minister Kang Man-soo urged advanced nations to expand their
currency swap programs to emerging markets including South Korea, aimed at
providing more liquidity to the local market.