S. Korean won soars on financial stabilization measures

SEOUL, Oct. 20 (Yonhap) -- South Korea's currency jumped against the U.S. dollar on Monday as investor sentiment was lifted by the government's sweeping measures to ease a liquidity crunch and stabilize the financial sector, dealers said.

The local currency traded at 1,268 won to the greenback as of 9:05 a.m., up 66
won from Friday's close, after rising as high as 1,230 won at one point. The
Korean won has lost about 25 percent since the start of this year.
The government unveiled sweeping and drastic measures on Sunday aimed at
providing state guarantees for banks' foreign debts and injecting liquidity to
dollar-starved banks and companies.
Under the measures, it will provide US$100 billion worth of state guarantees on
foreign debts owed by local banks for three years and supply $30 billion worth of
dollars "as soon as possible" to financial institutions.
The latest market stabilization moves come as banks and financial institutions
face difficulty in securing dollars to refinance debts and carry out business
deals amid tightening credit conditions.
kokobj@yna.co.kr
(END)