ID :
31506
Fri, 11/21/2008 - 17:46
Auther :
Shortlink :
https://www.oananews.org//node/31506
The shortlink copeid
S. Korean currency rebounds to dollar on stock rally
(ATTN: RECASTS slug, headline, lead; UPDATES with market close from para 2)
SEOUL, Nov. 21 (Yonhap) -- The South Korean currency rebounded against the U.S. dollar Friday as the local stock market rallied, shrugging off overnight plunges on Wall Street, dealers said.
The local currency closed at 1,495 won to the dollar, up 2 won from Thursday's
close. The won rose from an almost 11-year low the previous session with its
value losing more than 37 percent to the greenback so far this year.
"The Korean currency underwent roller-coaster trading, falling 25 won per the
dollar at one point. A suspected dollar sale anticipated by foreign exchange
authorities and stock market rallies pushed the won upward," said Jeon Seung-ji,
a currency analyst at Samsung Futures Inc.
The won sank to an intraday low of 1,525 won at one point, affected by foreign
selling of local stocks, but after the country's key stock index rebounded in
afternoon trading the won reversed its earlier course, dealers said.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) closed 5.8
percent higher at 1,003.73. Foreign investors swung to net buyers with 8.55
billion won (US$5.72 million) worth of local stocks on the Seoul bourse.
Despite the won's marginal gain, conditions affecting its movement are still
putting downward pressure on the local currency, analysts said.
U.S. stock markets tumbled Thursday for the second straight day on global
recession woes and the health of the U.S. auto industry. The Dow Jones industrial
average nosedived 5.6 percent and the tech-dominated Nasdaq composite index
plunged 5.07 percent.
Finance Minister Kang Man-soo told lawmakers that South Korea's economic growth
could fall below 3 percent in 2009 amid growing concerns that the global
financial meltdown could hit the export-driven economy.
Earlier in the day, UBS AG said in a note to its clients that South Korea's
economic growth will contract 3 percent next year, marking its first annual
decline in 11 years. UBS previously forecast a 1.1 percent advance.
"Next week, a batch of U.S. economic data will come out, which are widely
expected to point to dismal economic conditions," Jeon said. "Anticipated dollar
demand to cover end-month bills and investors' rush to safer assets are likely to
continue next week."
sooyeon@yna.co.kr
(END)
SEOUL, Nov. 21 (Yonhap) -- The South Korean currency rebounded against the U.S. dollar Friday as the local stock market rallied, shrugging off overnight plunges on Wall Street, dealers said.
The local currency closed at 1,495 won to the dollar, up 2 won from Thursday's
close. The won rose from an almost 11-year low the previous session with its
value losing more than 37 percent to the greenback so far this year.
"The Korean currency underwent roller-coaster trading, falling 25 won per the
dollar at one point. A suspected dollar sale anticipated by foreign exchange
authorities and stock market rallies pushed the won upward," said Jeon Seung-ji,
a currency analyst at Samsung Futures Inc.
The won sank to an intraday low of 1,525 won at one point, affected by foreign
selling of local stocks, but after the country's key stock index rebounded in
afternoon trading the won reversed its earlier course, dealers said.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) closed 5.8
percent higher at 1,003.73. Foreign investors swung to net buyers with 8.55
billion won (US$5.72 million) worth of local stocks on the Seoul bourse.
Despite the won's marginal gain, conditions affecting its movement are still
putting downward pressure on the local currency, analysts said.
U.S. stock markets tumbled Thursday for the second straight day on global
recession woes and the health of the U.S. auto industry. The Dow Jones industrial
average nosedived 5.6 percent and the tech-dominated Nasdaq composite index
plunged 5.07 percent.
Finance Minister Kang Man-soo told lawmakers that South Korea's economic growth
could fall below 3 percent in 2009 amid growing concerns that the global
financial meltdown could hit the export-driven economy.
Earlier in the day, UBS AG said in a note to its clients that South Korea's
economic growth will contract 3 percent next year, marking its first annual
decline in 11 years. UBS previously forecast a 1.1 percent advance.
"Next week, a batch of U.S. economic data will come out, which are widely
expected to point to dismal economic conditions," Jeon said. "Anticipated dollar
demand to cover end-month bills and investors' rush to safer assets are likely to
continue next week."
sooyeon@yna.co.kr
(END)
