S. Korean won hits over 7-month high to U.S. dollar

SEOUL, June 1 (Yonhap) -- The South Korean currency surged to an over 7-month
high against the U.S. dollar Monday as offshore investors snapped up local
stocks, dealers said.
The local currency closed at a yearly high of 1,237.2 won to the greenback, up
17.8 won, or 1.44 percent, from the previous session and the strongest level
since Oct. 14.
"Amid a globally weak dollar, the won extended gains as foreign investors snapped
up Seoul stocks," said Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
"In late trading, market players unloaded the dollar to cut losses, prompting the
won to rise further."
The Korean currency jumped to an intra-day high of 1,236.75 at one point in late
trading.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 1.38 percent to
1,415.1 as foreign investors posted net buying for the 12th straight session.
Analysts said the news that South Korea's trade surplus reached $5.15 billion in
May also put upward pressure on the Korean currency.
They added that a possible bankruptcy filing by ailing U.S. automaker General
Motors Corp. did not largely influence the currency market as market players had
already digested the news.
"The won's direction hinges on whether global stock markets continue their
rallies or not. Geopolitical risks from North Korea's nuclear test linger, but if
global stocks rise and the dollar is under additional downward pressure, the won
could test the 1,230 level tomorrow," Jeon said.
sooyeon@yna.co.kr
(END)