S. Korean currency tumbles against dollar on stock sell-offs

SEOUL, Oct. 28 (Yonhap) -- South Korea's currency plunged against the U.S. dollar on Tuesday as foreign investors continued to reduce their exposure to local stock markets, dealers said.

The local currency was trading at 1,470 won as of 9:13 a.m., down 27.5 won from
the previous session's close, after tumbling to 1,485 won at one point.
The Korean currency hit an over 10-year low to the dollar on Monday, as an
unexpected rate by the central bank is feared to increase market liquidity and
put downward pressure on the won's value. The won has fallen about 35 percent
against the greenback so far this year.
The Bank of Korea, the country's central bank, slashed its key interest rate by
0.75 percentage point, its biggest cut ever, to 4.25 percent on Monday in a bid
to keep global financial turmoil from sharply slowing the real economy.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) declined 3.54
percent to 912,95 as of 9:13 a.m.
U.S. stocks closed lower Monday on economic woes. The Dow Jones industrial
average declined 2.42 percent and the tech-dominated Nasdaq composite index shed
2.97 percent.
sooyeon@yna.co.kr
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