S. Korean currency trims gains vs dollar amid falling stock prices

(ATTN: RECASTS headline, lead; UPDATES with more info throughout)
SEOUL, Oct. 17 (Yonhap) -- South Korea's currency pared earlier gains against the
U.S. dollar late Friday morning as offshore investors dumped local stocks,
dealers said.
The local currency was trading at 1,361 won as of 11:26 a.m., up 12 won from the
previous session's close. The Korean currency rebounded for the first time in
three sessions with its value falling more than 29 percent so far this year.
The won plunged almost 10 percent per the dollar on Thursday due to growing
global economic recession fears. The local currency posted its biggest daily drop
since Dec. 31, 1997.
After the market opened, the won surged to 1,308 won at one point on the back of
overnight gains in U.S. markets. The move by South Korea's central bank to allow
more banks to receive dollars through the won-dollar swap deals added to the
won's gains. But after the country's key stock index dipped to negative
territory, the won cut earlier gains, dealers said.
The benchmark Korea Composite Stock Price Index (KOSPI) declined 2.42 percent to
1,184.38 as of 11:26 a.m.
U.S. stock markets gained on Thursday after volatile trading. The Dow Jones
industrial average rose 4.68 percent and the tech-dominated Nasdaq composite
index climbed 5.49 percent.