Korean won rises to 10-month high on stock rallies

By Kim Soo-yeon
SEOUL, Aug. 4 (Yonhap) -- The South Korean currency rose to a near 10-month high
against the U.S. dollar on Tuesday thanks to foreign stock buying and the
country's rising foreign exchange reserves, dealers said
The local currency was trading at 1,217.50 won to the greenback as of 9:23 a.m.,
up 4.9 won from Monday's close. It marked the highest level since Oct. 14, 2008
and the first time that the Korean unit rose past the 1,220-won level in about 10
months.
The won's ascent came as offshore investors continued to buy Seoul stocks for a
15th straight session, providing firm ground for the Korean won. The benchmark
Korea Composite Stock Price Index (KOSPI) rose 1.11 percent to 1,582.28 as of
9:23 a.m.
The news that the country's foreign reserves climbed for a fifth straight month
in July added to upward pressure on the local currency, they said.
South Korea's foreign exchange reserves totaled US$237.51 billion as of the end
of July, up $5.78 billion from the previous month, according to the Bank of
Korea.
The Korean currency tumbled 25.7 percent against the dollar last year alone amid
concerns over dollar shortages sparked by the collapse of Lehman Brothers last
September. But it has gained about 29 percent since it hit an 11-year low of
1,570.3 won in early March on the back of increased overseas borrowing by local
banks and the country's widening trade surplus.
sooyeon@yna.co.kr
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