ID :
34885
Wed, 12/10/2008 - 15:27
Auther :
Shortlink :
http://m.oananews.org//node/34885
The shortlink copeid
S. Korean won jumps 4 pct against U.S. dollar
SEOUL, Dec. 10 (Yonhap) -- South Korea's currency surged nearly 4 percent against the U.S. dollar on Wednesday as foreign investors unloaded the greenback to snap up local shares, analysts said.
The local currency soared 53.2 won, up 3.97 percent from Tuesday, to close at
1,393.8 won to the greenback, marking the fourth straight session of advance. At
one point in early trading, it rose as high as 1,387 won.
"Offshore dollar selling and stock rallies sent the won's value higher," said
Jeon Seung-ji, a currency analyst at Samsung Futures. "Global action to lower
interest rates also helped reduce investors' aversion to risky assets,
encouraging foreign buying here and increasing demand for the local currency."
The benchmark KOSPI stock index jumped 3.62 percent to 1,145.87 points on massive
buying by foreign investors, who picked up a net 343.9 billion won (US$246.7
million) worth of local shares.
Foreigners bought more than they sold for a third consecutive trading, helping
ease concerns over an exodus of foreign capital and demand for the greenback,
observers said.
Markets seemed to gain stability to some extent as the concerted efforts by
government and the central bank to inject more liquidity bolstered investor
sentiment at a time when the won has fallen sharply over the past weeks.
The government has announced a raft of economic-boosting measures including a
10-trillion won increase in budget spending for next year, while the Bank of
Korea (BOK) slashed its key interest rate from 5.25 percent to 4 percent in less
than a month since October.
In a bid to ease the dollar shortage, the BOK has also injected a total of $7
billion of the U.S. currency into the local financial system by using a currency
swap line with the Federal Reserve, supplying dollars for cash-strapped banks and
exporters, experts said.
"After surpassing the 1,500-won mark, the general consensus is that the won has
hit its near-term bottom," Jeon said. "Despite worsening indicators that point to
a sharp downturn in the overall economy, investors seemed to have turned their
attention more to government polices aimed at stimulating the economy."
kokobj@yna.co.kr
(END)
The local currency soared 53.2 won, up 3.97 percent from Tuesday, to close at
1,393.8 won to the greenback, marking the fourth straight session of advance. At
one point in early trading, it rose as high as 1,387 won.
"Offshore dollar selling and stock rallies sent the won's value higher," said
Jeon Seung-ji, a currency analyst at Samsung Futures. "Global action to lower
interest rates also helped reduce investors' aversion to risky assets,
encouraging foreign buying here and increasing demand for the local currency."
The benchmark KOSPI stock index jumped 3.62 percent to 1,145.87 points on massive
buying by foreign investors, who picked up a net 343.9 billion won (US$246.7
million) worth of local shares.
Foreigners bought more than they sold for a third consecutive trading, helping
ease concerns over an exodus of foreign capital and demand for the greenback,
observers said.
Markets seemed to gain stability to some extent as the concerted efforts by
government and the central bank to inject more liquidity bolstered investor
sentiment at a time when the won has fallen sharply over the past weeks.
The government has announced a raft of economic-boosting measures including a
10-trillion won increase in budget spending for next year, while the Bank of
Korea (BOK) slashed its key interest rate from 5.25 percent to 4 percent in less
than a month since October.
In a bid to ease the dollar shortage, the BOK has also injected a total of $7
billion of the U.S. currency into the local financial system by using a currency
swap line with the Federal Reserve, supplying dollars for cash-strapped banks and
exporters, experts said.
"After surpassing the 1,500-won mark, the general consensus is that the won has
hit its near-term bottom," Jeon said. "Despite worsening indicators that point to
a sharp downturn in the overall economy, investors seemed to have turned their
attention more to government polices aimed at stimulating the economy."
kokobj@yna.co.kr
(END)
