ID :
104798
Fri, 02/05/2010 - 14:48
Auther :
Shortlink :
https://www.oananews.org//node/104798
The shortlink copeid
Korean won falls 1.62 pct to dollar on euro-zone debt fears
SEOUL, Feb. 5 (Yonhap) -- The South Korean currency declined 1.62 percent against the U.S. dollar Friday as fears about ballooning budget deficits in the euro-zone sparked a flight to safer assets, dealers said.
The local currency closed at 1,169.90 won to the greenback, down 19 won from the
previous session and marking the weakest level since Dec. 29, 2009.
Analysts said the won's sharp fall came as investor appetite for risky assets
wilted due to heightened concerns over mounting fiscal deficit in Greece and
other debt-ridden European countries.
"European debt fears hit the Korean currency. But earlier losses were cut mainly
due to the dollar sale by exporters," said Byeon Ji-young, a currency analyst at
Woori Futures Co.
The Korean unit fell to as low as 1,177.50 won at one point, but its losses were
trimmed later due to exporters' sale of the greenback, dealers say.
The euro-zone debt concerns roiled the global markets, sending the Dow Jones
industrial average below 10,000 for the first time in three months on Thursday.
Mirroring overnight falls in U.S. markets, the benchmark Korea Composite Stock
Price Index (KOSPI) tumbled 3.05 percent to 1,567.12. Foreign investors dumped a
net 290.6 billion won (US$248.1 million) worth of Seoul stocks on the main
bourse.
The government said the deficit concerns would inevitably affect the Korean stock
and currency markets, but the deficit woes are forecast to have a limited impact
on the local markets.
"The European deficit fears are likely to have a limited impact on the Seoul
financial markets as the Dubai debt woes did," a government official said, adding
that the government will closely monitor the markets.
Analysts said the Korean currency is likely to face high volatility as market
uncertainties were amplified.
"As the issue is not likely to be solved in the near term, the local financial
markets may be affected by the debt woes for a considerable period of time," said
Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
Byeon at Woori Futures said that as the local currency did not fall to the 1,180
won level to the dollar, the Korean unit is likely to trade between the
1,160-1,180 won range for the time being.
sooyeon@yna.co.kr
(END)
The local currency closed at 1,169.90 won to the greenback, down 19 won from the
previous session and marking the weakest level since Dec. 29, 2009.
Analysts said the won's sharp fall came as investor appetite for risky assets
wilted due to heightened concerns over mounting fiscal deficit in Greece and
other debt-ridden European countries.
"European debt fears hit the Korean currency. But earlier losses were cut mainly
due to the dollar sale by exporters," said Byeon Ji-young, a currency analyst at
Woori Futures Co.
The Korean unit fell to as low as 1,177.50 won at one point, but its losses were
trimmed later due to exporters' sale of the greenback, dealers say.
The euro-zone debt concerns roiled the global markets, sending the Dow Jones
industrial average below 10,000 for the first time in three months on Thursday.
Mirroring overnight falls in U.S. markets, the benchmark Korea Composite Stock
Price Index (KOSPI) tumbled 3.05 percent to 1,567.12. Foreign investors dumped a
net 290.6 billion won (US$248.1 million) worth of Seoul stocks on the main
bourse.
The government said the deficit concerns would inevitably affect the Korean stock
and currency markets, but the deficit woes are forecast to have a limited impact
on the local markets.
"The European deficit fears are likely to have a limited impact on the Seoul
financial markets as the Dubai debt woes did," a government official said, adding
that the government will closely monitor the markets.
Analysts said the Korean currency is likely to face high volatility as market
uncertainties were amplified.
"As the issue is not likely to be solved in the near term, the local financial
markets may be affected by the debt woes for a considerable period of time," said
Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
Byeon at Woori Futures said that as the local currency did not fall to the 1,180
won level to the dollar, the Korean unit is likely to trade between the
1,160-1,180 won range for the time being.
sooyeon@yna.co.kr
(END)
