S. Korean won hits 2-month high to dollar

SEOUL, March 25 (Yonhap) -- The South Korean currency rose to a two-month high
against the U.S. dollar on Wednesday as exporters and foreign stock investors
unloaded the greenback, dealers said.
The local currency closed at 1,363 won to the dollar, up 20.5 won or 1.5 percent
from Tuesday and the highest level since Jan. 19.
"The dollar turned weaker against global major currencies and the local stock
market made a turnaround in late trading," said Jeon Seung-ji, a currency analyst
at Samsung Futures Inc. "Once the psychologically important 1,380-won level was
broken, market players scrambled to dump the dollar to cut losses, sending the
won's value sharply higher toward the market close."
The local currency was trading in a tight range throughout the session, but it
abruptly climbed as high as 1,362 won to the greenback toward the market close as
dollar selling intensified.
Since the Korean won dipped to an 11-year low against the dollar on March 2,
flirting with the 1,600-won mark, it has gained more than 15 percent, shrugging
off market speculation that Japanese investors may pull money out of market
massively in March.
The country's key stock index inched up 0.6 percent to 1,229.02 and foreign
investors snapped up a net 13.2 billion won (US$9.67 million) worth of local
stocks on the main bourse.
Analysts said although a one-way bet on the won's weakness has substantially
eased, uncertainty about the slowing economy and the global financial turmoil
lingers.
"It is still uncertain how smoothly the process of soaking up toxic assets from
U.S. banks will go. A set of economic data at home and abroad show that no clear
signs for an economic recovery are in sight," said Shin Jin-ho, a currency
analyst at Woori Futures Co., adding that the Korean unit may trade between
1,300-1,400 won level per the dollar until April.
sooyeon@yna.co.kr
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