ID :
38566
Fri, 01/02/2009 - 16:06
Auther :
Shortlink :
http://m.oananews.org//node/38566
The shortlink copeid
Korean currency tumbles 4.7 pct against dollar
(ATTN: RECASTS headline, lead; UPDATES with market close and details from para 2)
SEOUL, Jan. 2 (Yonhap) -- The South Korean currency plunged 4.66 percent against
the U.S. dollar on the first trading day of 2009 Friday as companies snapped up
the dollar to cover import bills after closing the book for 2008, dealers said.
The local currency closed at 1,321 won to the greenback, down 61.5 won from the
previous session's close, after dipping as low as 1,331 won at one point. The
won's daily fall was the largest since Nov. 6, when the local currency declined
by 64.8 won to the dollar.
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 won gained ground at the end of last year due to dollar sales by foreign
exchange authorities. Amid weakening intervention, local companies bought the
dollar to finance import bills," said Jeon Seung-ji, a currency analyst at
Samsung Futures Inc.
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.
Analysts said the Korean currency may be under downward pressure in the first
half of this year due to lingering concerns over the slumping economy.
But they added the won's weakness would not reach levels seen last year as the
country's current account is expected to swing to the black this year and massive
stock sell-offs by foreigners will likely abate.
"The won's weakness could continue into the first six months of this year as
bankruptcy risks among builders and shipbuilders weigh on the economy and banks'
financial health," Jeon said, adding that the local currency could trade between
1,250 and 1,450 won per the dollar in January.
sooyeon@yna.co.kr
(END)
SEOUL, Jan. 2 (Yonhap) -- The South Korean currency plunged 4.66 percent against
the U.S. dollar on the first trading day of 2009 Friday as companies snapped up
the dollar to cover import bills after closing the book for 2008, dealers said.
The local currency closed at 1,321 won to the greenback, down 61.5 won from the
previous session's close, after dipping as low as 1,331 won at one point. The
won's daily fall was the largest since Nov. 6, when the local currency declined
by 64.8 won to the dollar.
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 won gained ground at the end of last year due to dollar sales by foreign
exchange authorities. Amid weakening intervention, local companies bought the
dollar to finance import bills," said Jeon Seung-ji, a currency analyst at
Samsung Futures Inc.
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.
Analysts said the Korean currency may be under downward pressure in the first
half of this year due to lingering concerns over the slumping economy.
But they added the won's weakness would not reach levels seen last year as the
country's current account is expected to swing to the black this year and massive
stock sell-offs by foreigners will likely abate.
"The won's weakness could continue into the first six months of this year as
bankruptcy risks among builders and shipbuilders weigh on the economy and banks'
financial health," Jeon said, adding that the local currency could trade between
1,250 and 1,450 won per the dollar in January.
sooyeon@yna.co.kr
(END)
