ID :
48032
Fri, 02/27/2009 - 20:57
Auther :
Shortlink :
https://www.oananews.org//node/48032
The shortlink copeid
Won hits 11-year low to dollar
SEOUL, Feb. 27 (Yonhap) -- The South Korean currency fell to an 11-year low
against the U.S. dollar Friday as offshore investors snapped up the greenback
amid ongoing global financial turmoil, dealers said.
The local currency closed at 1,534 won to the greenback, down 16.5 won or 1.08
percent from the previous session's close and the lowest level since March 1998
when South Korea was in the midst of the 1997-98 Asian financial crisis.
"It is quite surprising to see that the local currency breached its previous
intra-day lowest level of 1,525 won so easily and fast," said Shin Jin-ho, a
currency analyst at Woori Futures Co. "Offshore investors seemed to snap up the
dollar further as there was no intervention despite the won's losses."
The Korean currency dipped as low as 1,544 won at one point, with its value
dipping 17.9 percent against the dollar so far this year.
Bleak economic news has weighed heavily on the local currency in recent sessions.
Speculation over a capital outflow of foreign investors and rising default risks
in some Eastern European countries, compounded by a lingering North Korean
missile threat, have been putting downward pressure on the won.
The news that South Korea logged the first current account deficit in four months
in January also hurt investor sentiment, market watchers said. January's deficit
came as exports were pounded by a sharp downturn in global trade.
Analysts said that given factors surrounding the local currency market, the won
will be under downward pressure to the greenback for the time being.
The Korean economy is rapidly heading into a recession, hit by tumbling exports
and sluggish domestic demand. In March and April, foreign investors will begin to
repatriate dividends to their home countries, sparking increased dollar demand.
"It seems that foreign exchange authorities' basic stance is to let the won's
value be determined by the market. In the short term, the Korean currency is
likely to test the 1,550-won level," said Jeon Seung-ji, a currency analyst at
Samsung Futures Inc.
sooyeon@yna.co.kr
(END)
against the U.S. dollar Friday as offshore investors snapped up the greenback
amid ongoing global financial turmoil, dealers said.
The local currency closed at 1,534 won to the greenback, down 16.5 won or 1.08
percent from the previous session's close and the lowest level since March 1998
when South Korea was in the midst of the 1997-98 Asian financial crisis.
"It is quite surprising to see that the local currency breached its previous
intra-day lowest level of 1,525 won so easily and fast," said Shin Jin-ho, a
currency analyst at Woori Futures Co. "Offshore investors seemed to snap up the
dollar further as there was no intervention despite the won's losses."
The Korean currency dipped as low as 1,544 won at one point, with its value
dipping 17.9 percent against the dollar so far this year.
Bleak economic news has weighed heavily on the local currency in recent sessions.
Speculation over a capital outflow of foreign investors and rising default risks
in some Eastern European countries, compounded by a lingering North Korean
missile threat, have been putting downward pressure on the won.
The news that South Korea logged the first current account deficit in four months
in January also hurt investor sentiment, market watchers said. January's deficit
came as exports were pounded by a sharp downturn in global trade.
Analysts said that given factors surrounding the local currency market, the won
will be under downward pressure to the greenback for the time being.
The Korean economy is rapidly heading into a recession, hit by tumbling exports
and sluggish domestic demand. In March and April, foreign investors will begin to
repatriate dividends to their home countries, sparking increased dollar demand.
"It seems that foreign exchange authorities' basic stance is to let the won's
value be determined by the market. In the short term, the Korean currency is
likely to test the 1,550-won level," said Jeon Seung-ji, a currency analyst at
Samsung Futures Inc.
sooyeon@yna.co.kr
(END)
