ID :
46082
Tue, 02/17/2009 - 14:27
Auther :
Shortlink :
https://www.oananews.org//node/46082
The shortlink copeid
Korean currency tumbles 1.92 pct to dollar
SEOUL, Feb. 17 (Yonhap) -- The South Korean currency plunged 1.92 percent against
the U.S. dollar on Tuesday as market jitters escalated about local banks' dollar
liquidity conditions, dealers said.
The local currency closed at 1,455.5 won to the greenback, down 28 won from the
previous session's close, marking the sixth straight day of decline. The won
dipped as low as 1,460 won at one point with its value falling 13.5 percent to
the dollar so far this year.
"A set of downbeat news at home and abroad unleashed dollar buying. It is
worrisome that local banks may suffer dollar shortages again," said Shin Jin-ho,
a currency analyst at Woori Futures Co.
Woori Bank's recent decision not to buy back US$400 million in subordinated bonds
before maturity sparked concerns over its dollar funding, hurting investor
sentiment, market watchers said.
In addition, the won's tumble was triggered by a renewed North Korean missile
threat and a possible bankruptcy filing by ailing U.S. automaker General Motors
Corp. Also responsible was rising concern over teetering banks in Europe, they
said.
The Korean currency declined to the 1,400-won level against the dollar for the
first time in about two months on Thursday after plunging as much as 25.7 percent
last year.
Foreign investors dumped a net 174.8 billion won ($120.1 million) worth of local
stocks on the main bourse. The country's key stock index tumbled 4.11 percent to
1,127.19.
Analysts said the local currency is likely to lose ground for the time being as
the economic woes and uncertainties surrounding corporate failures linger.
"Given that dollar demand by foreigners for repatriating dividends in March and
April to their home countries will be strong, it is worrisome that the won's
value is fast falling in recent sessions," said Jeon Seung-ji, a currency analyst
at Samsung Futures Inc. "The won's weakness is expected to continue amid the
slumping economy."
The South Korean economy is rapidly heading into a recession amid faltering
exports and sluggish domestic demand.
The government said last week that Asia's fourth-largest economy will likely
shrink 2 percent this year, the first annual contraction since the 1997-98 Asian
financial crisis.
sooyeon@yna.co.kr
(END)
the U.S. dollar on Tuesday as market jitters escalated about local banks' dollar
liquidity conditions, dealers said.
The local currency closed at 1,455.5 won to the greenback, down 28 won from the
previous session's close, marking the sixth straight day of decline. The won
dipped as low as 1,460 won at one point with its value falling 13.5 percent to
the dollar so far this year.
"A set of downbeat news at home and abroad unleashed dollar buying. It is
worrisome that local banks may suffer dollar shortages again," said Shin Jin-ho,
a currency analyst at Woori Futures Co.
Woori Bank's recent decision not to buy back US$400 million in subordinated bonds
before maturity sparked concerns over its dollar funding, hurting investor
sentiment, market watchers said.
In addition, the won's tumble was triggered by a renewed North Korean missile
threat and a possible bankruptcy filing by ailing U.S. automaker General Motors
Corp. Also responsible was rising concern over teetering banks in Europe, they
said.
The Korean currency declined to the 1,400-won level against the dollar for the
first time in about two months on Thursday after plunging as much as 25.7 percent
last year.
Foreign investors dumped a net 174.8 billion won ($120.1 million) worth of local
stocks on the main bourse. The country's key stock index tumbled 4.11 percent to
1,127.19.
Analysts said the local currency is likely to lose ground for the time being as
the economic woes and uncertainties surrounding corporate failures linger.
"Given that dollar demand by foreigners for repatriating dividends in March and
April to their home countries will be strong, it is worrisome that the won's
value is fast falling in recent sessions," said Jeon Seung-ji, a currency analyst
at Samsung Futures Inc. "The won's weakness is expected to continue amid the
slumping economy."
The South Korean economy is rapidly heading into a recession amid faltering
exports and sluggish domestic demand.
The government said last week that Asia's fourth-largest economy will likely
shrink 2 percent this year, the first annual contraction since the 1997-98 Asian
financial crisis.
sooyeon@yna.co.kr
(END)
