ID :
57978
Tue, 04/28/2009 - 16:17
Auther :
Shortlink :
https://www.oananews.org//node/57978
The shortlink copeid
Won hits 1-month low against dollar on flu scare
SEOUL, April 28 (Yonhap) -- The South Korean currency declined to a one-month low
against the U.S. dollar Tuesday on concerns over the impact of an outbreak of
swine flu on the global economy, dealers said.
The local currency closed at 1,356.8 won to the dollar, down 13.4 won from the
previous session and the lowest level since April 1.
"The won extended its earlier losses as the country's stock market plunged due to
fears over spreading swine flu," a dealer at Woori Bank said.
The won's weakness comes amid heightened concerns over a swine flu pandemic,
denting investors' appetite for riskier assets, they said.
South Korean health authorities said earlier in the day that they are conducting
tests on a citizen suspected of having contracted swine flu as the country
heightened its health alert following a global outbreak of the contagious
disease.
Renewed concerns over the U.S. banking system also sparked demand for dollar
buying, analysts said. The Wall Street Journal reported that Bank of America
Corp. and Citigroup Inc. have been told by regulators to raise more capital
following stress tests over 19 of the U.S.'s largest banks, renewing fears over
the health of U.S. lenders.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 2.95 percent to
1,300.24, the lowest in about three weeks. Foreign investors sold a net 55.6
billion won (US$41 million) worth of local stocks on the main bourse.
Analysts say uncertainty over whether creditor banks may roll over dollar forward
contracts signed with ailing GM Daewoo Auto & Technology Co. put downward
pressure on the local currency.
GM Daewoo, the South Korean unit of beleaguered U.S. automaker General Motors
Corp., has asked creditor banks to roll over part of about $900 million in such
contracts which mature in May and June as the move could ease a liquidity crunch
confronting the automaker.
"As most market players are expecting that the maturity will be extended, the
possible move would not have a big impact on the currency market," said Jeon
Seung-ji, a currency analyst at Samsung Futures Inc. "But if banks decide to roll
over the maturity by three months, shorter than what the automaker is hoping for,
it could exert some downward pressure on the Korean won in the short term."
sooyeon@yna.co.kr
(END)
against the U.S. dollar Tuesday on concerns over the impact of an outbreak of
swine flu on the global economy, dealers said.
The local currency closed at 1,356.8 won to the dollar, down 13.4 won from the
previous session and the lowest level since April 1.
"The won extended its earlier losses as the country's stock market plunged due to
fears over spreading swine flu," a dealer at Woori Bank said.
The won's weakness comes amid heightened concerns over a swine flu pandemic,
denting investors' appetite for riskier assets, they said.
South Korean health authorities said earlier in the day that they are conducting
tests on a citizen suspected of having contracted swine flu as the country
heightened its health alert following a global outbreak of the contagious
disease.
Renewed concerns over the U.S. banking system also sparked demand for dollar
buying, analysts said. The Wall Street Journal reported that Bank of America
Corp. and Citigroup Inc. have been told by regulators to raise more capital
following stress tests over 19 of the U.S.'s largest banks, renewing fears over
the health of U.S. lenders.
The benchmark Korea Composite Stock Price Index (KOSPI) plunged 2.95 percent to
1,300.24, the lowest in about three weeks. Foreign investors sold a net 55.6
billion won (US$41 million) worth of local stocks on the main bourse.
Analysts say uncertainty over whether creditor banks may roll over dollar forward
contracts signed with ailing GM Daewoo Auto & Technology Co. put downward
pressure on the local currency.
GM Daewoo, the South Korean unit of beleaguered U.S. automaker General Motors
Corp., has asked creditor banks to roll over part of about $900 million in such
contracts which mature in May and June as the move could ease a liquidity crunch
confronting the automaker.
"As most market players are expecting that the maturity will be extended, the
possible move would not have a big impact on the currency market," said Jeon
Seung-ji, a currency analyst at Samsung Futures Inc. "But if banks decide to roll
over the maturity by three months, shorter than what the automaker is hoping for,
it could exert some downward pressure on the Korean won in the short term."
sooyeon@yna.co.kr
(END)
