S. Korean currency falls against U.S. dollar

SEOUL, Oct. 15 (Yonhap) -- The South Korean currency fell against the U.S. dollar on Wednesday as offshore investors unloaded local stocks amid falling stock prices, dealers said.

The local currency was trading at 1,236.5 won as of 10:16 a.m., down 28.5 won
from the previous session's close. The Korean currency jumped on Tuesday for the
fourth straight session with its value falling more than 22 percent so far this
year.
"Falling stock prices are putting downward pressure on the won," said a dealer at
a local bank.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 2.08 percent to
1,339.18 as of 10:16 a.m., as investors cashed in profits from recent rallies,
tracking overnight losses on Wall Street. Foreign investors dumped a net 115
billion won (US$93.8 million) on the Seoul bourse.
South Korea is struggling to unfreeze tightening credit conditions sparked by the
collapse of U.S. investment bank Lehman Brothers Holdings Inc. last month and the
resulting financial crisis. A dollar shortage has pushed down the won's value and
local stocks over the past few weeks.
The local currency has gained 187 won against the greenback over the last four
sessions on hopes that global financial instability may ease amid stepped-up
international efforts to contain further damage, analysts said.