ID :
36121
Wed, 12/17/2008 - 15:41
Auther :
Shortlink :
http://m.oananews.org//node/36121
The shortlink copeid
Won climbs 1.86 pct vs. dollar on U.S. rate cut
(ATTN: RECASTS headline, lead; UPDATES with market close from para 2)
SEOUL, Dec. 17 (Yonhap) -- South Korea's currency rose 1.86 percent against the
U.S. dollar on Wednesday as investors' appetite for riskier assets was revived on
the back of the U.S. Federal Reserve's decision to cut the rate to a record low,
dealers said.
The local currency closed at 1,325 won to the greenback, up 24.6 won from
Tuesday's close, after jumping as high as 1,310 won at one point.
The Korean won gained ground for the third straight session with its value
declining about 29 percent to the dollar so far this year.
"A steep rate cut by the Fed led the dollar to globally weaken against major
currencies," said Shin Jin-ho, a currency analyst at Woori Futures Co. "Continued
liquidity supply to the financial system helped ease the money market."
The U.S. Federal Reserve slashed the key interest rate Tuesday to a range of zero
to 0.25 percent from one percent, marking the lowest level since it began to
target the rate. South Kora's policy rate stands at an all-time low of 3 percent.
U.S. stocks surged Tuesday on expectations that the rate reduction will help
revive the slumping U.S. economy. The Dow Jones industrial average soared 4.21
percent, and the tech-dominated Nasdaq composite index jumped 5.41 percent.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) edged up 0.71
percent to 1,169.75. Foreign investors snapped up a net 131.8 billion won
(US$99.8 million) worth of local stocks on the Seoul bourse.
Analysts said toward the year-end, investors seemed to bet on the gains of the
local currency, which plunged a year-low of 1,513 won to the greenback on Nov.
24.
"If offshore investors continue to buy local stocks and exporters unload the
greenback, the possibility that the Korean currency may rise above the 1,300-won
level cannot be excluded," Shin said. "But it is too early to say that the won's
movement is on the upward trend next year as the slowing economy and liquidity
problems facing local lenders will likely linger."
sooyeon@yna.co.kr
(END)
SEOUL, Dec. 17 (Yonhap) -- South Korea's currency rose 1.86 percent against the
U.S. dollar on Wednesday as investors' appetite for riskier assets was revived on
the back of the U.S. Federal Reserve's decision to cut the rate to a record low,
dealers said.
The local currency closed at 1,325 won to the greenback, up 24.6 won from
Tuesday's close, after jumping as high as 1,310 won at one point.
The Korean won gained ground for the third straight session with its value
declining about 29 percent to the dollar so far this year.
"A steep rate cut by the Fed led the dollar to globally weaken against major
currencies," said Shin Jin-ho, a currency analyst at Woori Futures Co. "Continued
liquidity supply to the financial system helped ease the money market."
The U.S. Federal Reserve slashed the key interest rate Tuesday to a range of zero
to 0.25 percent from one percent, marking the lowest level since it began to
target the rate. South Kora's policy rate stands at an all-time low of 3 percent.
U.S. stocks surged Tuesday on expectations that the rate reduction will help
revive the slumping U.S. economy. The Dow Jones industrial average soared 4.21
percent, and the tech-dominated Nasdaq composite index jumped 5.41 percent.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) edged up 0.71
percent to 1,169.75. Foreign investors snapped up a net 131.8 billion won
(US$99.8 million) worth of local stocks on the Seoul bourse.
Analysts said toward the year-end, investors seemed to bet on the gains of the
local currency, which plunged a year-low of 1,513 won to the greenback on Nov.
24.
"If offshore investors continue to buy local stocks and exporters unload the
greenback, the possibility that the Korean currency may rise above the 1,300-won
level cannot be excluded," Shin said. "But it is too early to say that the won's
movement is on the upward trend next year as the slowing economy and liquidity
problems facing local lenders will likely linger."
sooyeon@yna.co.kr
(END)
