ID :
47387
Tue, 02/24/2009 - 17:15
Auther :
Shortlink :
https://www.oananews.org//node/47387
The shortlink copeid
Won hits 11-year low against U.S. dollar
SEOUL, Feb. 24 (Yonhap) -- The South Korean currency plunged to a near 11-year
low against the U.S. dollar Tuesday as renewed concerns over a credit squeeze
prompted foreigners to dump local shares, dealers said.
The local currency closed at 1,516.3 won to the greenback, down 27.3 won, or 1.8
percent, from the previous session's close and the lowest level since March 13,
1998.
The Korean currency dipped as low as 1,517 won at one point with its value
falling 16.9 percent against the dollar so far this year.
"Amid global rallies of the dollar, offshore investors unloaded local stocks
following heavy losses in U.S. markets," said Jeon Seung-ji, a currency analyst
at Samsung Futures Inc. "The reports about North Korea's readiness to launch what
it claims is a satellite also hurt investor sentiment."
The won's weakness comes as foreign investors scrambled to dump local shares for
the 11th straight session in pursuit of safer assets following overnight setbacks
in U.S. markets. The country's key stock index tumbled 3.24 percent.
The local currency market has been gripped by concerns that Japanese financial
firms may pull their money out of the Seoul market en masse in March when they
close their books.
Market jitters have also deepened over a chunk of foreign currency-denominated
bonds set to mature in March, with fears that banks will not be able to pay back
the debts amid a dollar shortage.
Geopolitical tensions renewed after North Korea said it is preparing to launch a
satellite from its northeastern coast, which many experts say could be the
test-firing of a long-range missile
Experts say the Korean currency will be under further downward pressure in March
and April because dollar demand will be stronger as foreign investors begin to
repatriate dividends to their home countries.
"The won's weakness is likely to continue for the time being. But the pace of the
won's fall might be less steep than that in late last year because foreign debt
held by local banks declined and caution against possible intervention will
remain strong," Jeon added.
sooyeon@yna.co.kr
(END)
low against the U.S. dollar Tuesday as renewed concerns over a credit squeeze
prompted foreigners to dump local shares, dealers said.
The local currency closed at 1,516.3 won to the greenback, down 27.3 won, or 1.8
percent, from the previous session's close and the lowest level since March 13,
1998.
The Korean currency dipped as low as 1,517 won at one point with its value
falling 16.9 percent against the dollar so far this year.
"Amid global rallies of the dollar, offshore investors unloaded local stocks
following heavy losses in U.S. markets," said Jeon Seung-ji, a currency analyst
at Samsung Futures Inc. "The reports about North Korea's readiness to launch what
it claims is a satellite also hurt investor sentiment."
The won's weakness comes as foreign investors scrambled to dump local shares for
the 11th straight session in pursuit of safer assets following overnight setbacks
in U.S. markets. The country's key stock index tumbled 3.24 percent.
The local currency market has been gripped by concerns that Japanese financial
firms may pull their money out of the Seoul market en masse in March when they
close their books.
Market jitters have also deepened over a chunk of foreign currency-denominated
bonds set to mature in March, with fears that banks will not be able to pay back
the debts amid a dollar shortage.
Geopolitical tensions renewed after North Korea said it is preparing to launch a
satellite from its northeastern coast, which many experts say could be the
test-firing of a long-range missile
Experts say the Korean currency will be under further downward pressure in March
and April because dollar demand will be stronger as foreign investors begin to
repatriate dividends to their home countries.
"The won's weakness is likely to continue for the time being. But the pace of the
won's fall might be less steep than that in late last year because foreign debt
held by local banks declined and caution against possible intervention will
remain strong," Jeon added.
sooyeon@yna.co.kr
(END)
