ID :
52454
Fri, 03/27/2009 - 07:48
Auther :
Shortlink :
https://www.oananews.org//node/52454
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Korean won hits over 2-month high to dollar
SEOUL, March 26 (Yonhap) -- The South Korean currency rose to an over two-month high against the U.S. dollar on Thursday after the stock market staged a rebound with offshore investors dumping the greenback, dealers said.
The local currency closed at 1,330.5 won to the dollar, up 32.5 won, or 2.44
percent, from Wednesday and the highest finish since Jan. 7.
"The Seoul market reversed earlier losses, contributing to stabilization of the
won's value," said Shin Jin-ho, a currency analyst at Woori Futures Inc. "As
several psychologically important levels were broken, players seemed to bet on
the won's strength."
The Korean currency gained to as high as 1,330 won per the dollar in late
trading, extending its advances to a fourth straight session. The won has dipped
5.34 percent to the greenback so far this year.
The dollar sharply weakened against major currencies on Wednesday after U.S.
Treasury Secretary Timothy Geithner said he was open to China's proposal to
increase the use of the International Monetary Fund's special drawing rights
(SDRs).
His remarks were interpreted by investors as the acceptance of China's proposal
to replace the dollar with SDRs as the world's reserve currency. The greenback
later recouped earlier losses after Geithner said the dollar will remain the
world's dominant reserve currency for a long time.
The Korean won has regained more than 18 percent after dipping to an 11-year low
against the dollar on March 2 and flirting for a time with the 1,600-won mark.
The currency has apparently shrugged off market speculation that Japanese
investors may pull money out of the country en masse in March.
The country's key stock index closed up 1.2 percent at 1,243.8, marking the
highest yearly closing. Foreign investors bought a net 56.8 billion won (US$42.6
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.
"Uncertainty surrounding the market still persists. But given the country's
improving trade balance and an onset of foreign currency debt sales by local
firms, the Korean currency may get on an upward trend per the dollar faster than
expected," said Jun Min-kyu, an analyst at Korea Investment & Securities Co.
sooyeon@yna.co.kr
(END)
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The local currency closed at 1,330.5 won to the dollar, up 32.5 won, or 2.44
percent, from Wednesday and the highest finish since Jan. 7.
"The Seoul market reversed earlier losses, contributing to stabilization of the
won's value," said Shin Jin-ho, a currency analyst at Woori Futures Inc. "As
several psychologically important levels were broken, players seemed to bet on
the won's strength."
The Korean currency gained to as high as 1,330 won per the dollar in late
trading, extending its advances to a fourth straight session. The won has dipped
5.34 percent to the greenback so far this year.
The dollar sharply weakened against major currencies on Wednesday after U.S.
Treasury Secretary Timothy Geithner said he was open to China's proposal to
increase the use of the International Monetary Fund's special drawing rights
(SDRs).
His remarks were interpreted by investors as the acceptance of China's proposal
to replace the dollar with SDRs as the world's reserve currency. The greenback
later recouped earlier losses after Geithner said the dollar will remain the
world's dominant reserve currency for a long time.
The Korean won has regained more than 18 percent after dipping to an 11-year low
against the dollar on March 2 and flirting for a time with the 1,600-won mark.
The currency has apparently shrugged off market speculation that Japanese
investors may pull money out of the country en masse in March.
The country's key stock index closed up 1.2 percent at 1,243.8, marking the
highest yearly closing. Foreign investors bought a net 56.8 billion won (US$42.6
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.
"Uncertainty surrounding the market still persists. But given the country's
improving trade balance and an onset of foreign currency debt sales by local
firms, the Korean currency may get on an upward trend per the dollar faster than
expected," said Jun Min-kyu, an analyst at Korea Investment & Securities Co.
sooyeon@yna.co.kr
(END)
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