Korean currency tumbles 5 pct against dollar

SEOUL, Jan. 2 (Yonhap) -- The South Korean currency plunged 4.98 percent against
the U.S. dollar on the first trading day of 2009 Friday on strong dollar demand
by companies to cover import bills, dealers said.
The local currency was trading at 1,325.50 won to the greenback as of 10:30 a.m.,
down 66 won from the previous session's close, after dipping as low as 1,331 won
at one point.
Hit by the U.S.-sparked global financial crisis, the Korean won plunged 25.7
percent to the dollar last year alone, becoming one of the world's
worst-performing currencies. The local currency ended a dismal year with a modest
gain against the greenback on Tuesday, as foreign exchange authorities supposedly
stepped in to boost the won's year-end value, dealers said.
Dealers said the won's sharp weakness on the first day of the new year comes as
local companies, which withheld their dollar buying at the end of 2008, snapped
up the greenback to cover their import bills amid reduced caution against
intervention.
The local foreign exchange market opened an hour later than usual at 10:00 a.m.
sooyeon@yna.co.kr
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