ID :
24219
Mon, 10/13/2008 - 18:46
Auther :
Shortlink :
http://m.oananews.org//node/24219
The shortlink copeid
Won surges on global efforts, stock rallies
(ATTN: RECASTS lead; UPDATES 2-3 para with closing figures)
SEOUL, Oct. 13 (Yonhap) -- The South Korean currency Monday jumped for a third straight session against the U.S. dollar as investors dumped the greenback on expectations global financial instability might not worsen amid stepped-up international efforts to avoid a crisis, dealers said.
The won closed at 1,238 won to the greenback, up 71 won from Friday's close after
soaring to as high as 1,226 won at one point. The won jumped 157 won against the
greenback for the past three trading sessions.
Stock rallies also added to the won's upward move. The KOSPI, the country's key
stock index, closed up 3.79 percent at 1,288.53, rebounding from a 12.55 percent
plunge last week.
"Joint efforts by global leaders to stave off a crisis and measures taken against
speculative forces in currency markets contributed to boosting the won's value,"
said Hong Seung-mo, a dealer at Shinhan Bank. "Investors seemed to be afraid of a
possible steep fall of the won-dollar exchange rates."
Dollar selling expanded as investors dumped the greenback on worries that the
government might intervene in the market to support the sliding currency, dealers
said. The won has lost nearly 30 percent since the start of this year.
A recent global credit crunch that started in the United States 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 however
continue to prod market participants to scramble to buy dollars.
Global action has been swift with central banks of major countries slashing their
key interest rates to block the evolving financial crisis from cascading into
their real economies.
After a meeting in Washington late last week, financial leaders from the Group of
Seven advanced countries issued a statement under which they agreed that the
current situation calls for urgent and exceptional action and pledged to take
"all necessary steps" to unfreeze credit and money markets.
Officials here are also rushing to resolve the currency shortage.
The Finance Ministry recently announced that it will inject a total of US$10
billion into the nation's won-dollar swap market to provide liquidity amid
tightening credit conditions. The government has spent almost $25 billion since
March to support the won.
Attending the annual meetings of the International Monetary Fund and the World
Bank in Washington, Finance Minister Kang Man-soo urged advanced nations Saturday
to expand their currency swap programs to emerging markets including South Korea,
aimed at providing more liquidity to the local market.
SEOUL, Oct. 13 (Yonhap) -- The South Korean currency Monday jumped for a third straight session against the U.S. dollar as investors dumped the greenback on expectations global financial instability might not worsen amid stepped-up international efforts to avoid a crisis, dealers said.
The won closed at 1,238 won to the greenback, up 71 won from Friday's close after
soaring to as high as 1,226 won at one point. The won jumped 157 won against the
greenback for the past three trading sessions.
Stock rallies also added to the won's upward move. The KOSPI, the country's key
stock index, closed up 3.79 percent at 1,288.53, rebounding from a 12.55 percent
plunge last week.
"Joint efforts by global leaders to stave off a crisis and measures taken against
speculative forces in currency markets contributed to boosting the won's value,"
said Hong Seung-mo, a dealer at Shinhan Bank. "Investors seemed to be afraid of a
possible steep fall of the won-dollar exchange rates."
Dollar selling expanded as investors dumped the greenback on worries that the
government might intervene in the market to support the sliding currency, dealers
said. The won has lost nearly 30 percent since the start of this year.
A recent global credit crunch that started in the United States 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 however
continue to prod market participants to scramble to buy dollars.
Global action has been swift with central banks of major countries slashing their
key interest rates to block the evolving financial crisis from cascading into
their real economies.
After a meeting in Washington late last week, financial leaders from the Group of
Seven advanced countries issued a statement under which they agreed that the
current situation calls for urgent and exceptional action and pledged to take
"all necessary steps" to unfreeze credit and money markets.
Officials here are also rushing to resolve the currency shortage.
The Finance Ministry recently announced that it will inject a total of US$10
billion into the nation's won-dollar swap market to provide liquidity amid
tightening credit conditions. The government has spent almost $25 billion since
March to support the won.
Attending the annual meetings of the International Monetary Fund and the World
Bank in Washington, Finance Minister Kang Man-soo urged advanced nations Saturday
to expand their currency swap programs to emerging markets including South Korea,
aimed at providing more liquidity to the local market.
