ID :
26222
Thu, 10/23/2008 - 23:37
Auther :
Shortlink :
https://www.oananews.org//node/26222
The shortlink copeid
S. Korean won plunges on share sale, financial woes
(ATTN: UPDATES figures in paras 2-3; ADDS analyst comments in paras 4-5)
SEOUL, Oct. 23 (Yonhap) -- South Korea's currency plunged against the U.S. dollar on Thursday as investor sentiment was undermined by sharp falls in local stocks and growing concerns over its negative impact on the real economy, dealers said.
The local currency was trading at 1,417.5 won to the greenback as of 11:05 a.m.,
down 54.5 won from Wednesday's close, after tumbling as low as 1,436 won at one
point. The Korean won has lost about 34 percent since the start of this year.
South Korea's benchmark stock index nosedived 8.05 percent to trade at 1,043.24,
taking a cue from overnight setbacks in the U.S. markets. Earlier steep losses
prompted the bourse operator to suspend program trading temporarily to cool the
market just after it opened.
"The won's plunge stemmed mostly from continued declines in local stock markets,
which was prompted by jitters that the financial turmoil could take a heavy toll
on the real economy," said Shin Jin-ho, a currency analyst at Woori Futures.
"The dollar is also gaining ground against a basket of other currencies as
foreign investors are pulling their money out of emerging markets and converting
the proceeds into the safer greenback." he added.
The descent comes despite the government's back-to-back measures aimed at easing
a dollar-funding shortage in the banking sector and shielding its economy from
the global financial turmoil.
On Sunday, the Finance Ministry unveiled a $130 billion bank bailout package that
guarantees banks' foreign debts and injects dollars into cash-strapped financial
institutions.
Two days later, the ministry announced sweeping measures to buy land and unsold
houses from struggling builders and to ease their liquidity crunch. The move is
intended to protect the flagging construction sector from the ongoing financial
turmoil as it accounts for around 20 percent of the nation's gross domestic
product.
kokobj@yna.co.kr
(END)
SEOUL, Oct. 23 (Yonhap) -- South Korea's currency plunged against the U.S. dollar on Thursday as investor sentiment was undermined by sharp falls in local stocks and growing concerns over its negative impact on the real economy, dealers said.
The local currency was trading at 1,417.5 won to the greenback as of 11:05 a.m.,
down 54.5 won from Wednesday's close, after tumbling as low as 1,436 won at one
point. The Korean won has lost about 34 percent since the start of this year.
South Korea's benchmark stock index nosedived 8.05 percent to trade at 1,043.24,
taking a cue from overnight setbacks in the U.S. markets. Earlier steep losses
prompted the bourse operator to suspend program trading temporarily to cool the
market just after it opened.
"The won's plunge stemmed mostly from continued declines in local stock markets,
which was prompted by jitters that the financial turmoil could take a heavy toll
on the real economy," said Shin Jin-ho, a currency analyst at Woori Futures.
"The dollar is also gaining ground against a basket of other currencies as
foreign investors are pulling their money out of emerging markets and converting
the proceeds into the safer greenback." he added.
The descent comes despite the government's back-to-back measures aimed at easing
a dollar-funding shortage in the banking sector and shielding its economy from
the global financial turmoil.
On Sunday, the Finance Ministry unveiled a $130 billion bank bailout package that
guarantees banks' foreign debts and injects dollars into cash-strapped financial
institutions.
Two days later, the ministry announced sweeping measures to buy land and unsold
houses from struggling builders and to ease their liquidity crunch. The move is
intended to protect the flagging construction sector from the ongoing financial
turmoil as it accounts for around 20 percent of the nation's gross domestic
product.
kokobj@yna.co.kr
(END)
