S. Korean currency surges to dollar on stock rally

SEOUL, Oct. 29 (Yonhap) -- South Korea's currency rebounded from an over 10-year low against the U.S. dollar on Wednesday as local stocks jumped, tracking overnight surges in U.S. markets, dealers said.

The local currency was trading at 1,415.2 won as of 9:24 a.m., up 52.6 won from
the previous session's close, after jumping to as high as 1,397 won at one point.
The Korean currency declined to an over 10-year low to the greenback on Tuesday
as foreign stock selling continued, shrugging off the central bank's efforts to
calm markets by making a big rate cut. The won has declined about 36 percent to
the dollar so far this year.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) soared 7.7
percent to 1,076.14 as of 9:24 a.m.
U.S. stocks surged Tuesday on rising expectations for a rate cut by the Federal
Reserve due out this week. The Dow Jones industrial average soared 10.88 percent,
and the tech-dominated Nasdaq composite index jumped 9.53 percent.
The Bank of Korea, the country's central bank, lowered 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. The
government is planning to cut additional taxes and increase its fiscal spending
in a move to bolster the sagging economy.
Meanwhile, South Korea's financial watchdog said it plans to suspend requiring
local banks to submit records of their daily foreign-exchange transactions with
customers starting today in a bid to boost sluggish trading volume in the market.
The Financial Supervisory Services has investigated allegations that some
currency dealers are violating trading rules, as the local currency has continued
its freefall.