Won slides against dollar amid dollar shortage woes

SEOUL, March 2 (Yonhap) -- The South Korean currency declined against the U.S.
dollar Monday, flirting with the 1,560-won mark, as concerns over the health of
the U.S. banking sector sparked dollar shortage woes, dealers said.

The local currency was trading at 1,560.50 won to the greenback as of 9:28 a.m.,
down 26.5 won from the previous session's close. The currency dipped as low as
1,562 won at one point. The won has lost around 19 percent against the dollar so
far this year.
The U.S. government said Friday it will boost its stake in troubled Citigroup
Inc. to up to 36 percent by converting its preferred stocks to common shares,
which analysts say may be a model for ailing other financial banks.
The country's key stock index tumbled 3.03 percent hit by losses in U.S. markets
and the won's weakness. The Dow Jones industrial average reached the lowest close
in 12 years on Friday due to deepening financial woes.
Foreign investors continued their selling spree of local stocks for the 15th
straight session, dumping a net 28.9 billion won (US$18.6 million) worth of local
stocks on the main bourse.
sooyeon@yna.co.kr
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