ID :
27340
Thu, 10/30/2008 - 09:30
Auther :
Shortlink :
https://www.oananews.org//node/27340
The shortlink copeid
S. Korean currency surges against dollar
SEOUL, Oct. 29 (Yonhap) -- South Korea's currency rose against the U.S. dollar on Wednesday for the first time in seven sessions after the U.S. stock market rallied in the previous session, dealers said.
The local currency closed at 1,427 won to the greenback, up 40.8 won, or 2.9
percent from Tuesday's close, marking the first gain in seven sessions. The won
has declined more than 34 percent to the dollar so far this year.
"The won's gain came as U.S. stock markets rallied on Monday, but the local
currency pared earlier gains as importers bought the dollar to settle bills,"
said Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
The local currency soared to an intraday high of 1,396 won at one point, but it
cut earlier gains after the country's share prices swung to the negative
territory and importers' dollar demand continued, dealers said.
U.S. stocks surged Tuesday on rising expectations for a rate cut by the Federal
Reserve this week. The Dow Jones industrial average soared 10.88 percent, and the
tech-dominated Nasdaq composite index jumped 9.53 percent.
However, reversing earlier gains, South Korea's benchmark Korea Composite Stock
Price Index (KOSPI) declined 3.02 percent to 968.97. Foreign investors snapped up
local stocks for the first time in 11 sessions, buying a net 10.6 billion won
($7.4 million) on the Seoul bourse.
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 regulations
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.
"This is a tricky situation. Although there are domestic factors affecting the
won's downward movement, global financial markets should first be stabilized,"
Jeon said.
The local currency closed at 1,427 won to the greenback, up 40.8 won, or 2.9
percent from Tuesday's close, marking the first gain in seven sessions. The won
has declined more than 34 percent to the dollar so far this year.
"The won's gain came as U.S. stock markets rallied on Monday, but the local
currency pared earlier gains as importers bought the dollar to settle bills,"
said Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
The local currency soared to an intraday high of 1,396 won at one point, but it
cut earlier gains after the country's share prices swung to the negative
territory and importers' dollar demand continued, dealers said.
U.S. stocks surged Tuesday on rising expectations for a rate cut by the Federal
Reserve this week. The Dow Jones industrial average soared 10.88 percent, and the
tech-dominated Nasdaq composite index jumped 9.53 percent.
However, reversing earlier gains, South Korea's benchmark Korea Composite Stock
Price Index (KOSPI) declined 3.02 percent to 968.97. Foreign investors snapped up
local stocks for the first time in 11 sessions, buying a net 10.6 billion won
($7.4 million) on the Seoul bourse.
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 regulations
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.
"This is a tricky situation. Although there are domestic factors affecting the
won's downward movement, global financial markets should first be stabilized,"
Jeon said.
