Korean currency rises to U.S. dollar on stock rallies

SEOUL, Sept. 16 (Yonhap) -- The South Korean currency rose to a yearly high
against the U.S. dollar on Wednesday as foreign investors bought local stocks
amid hopes for a global economic recovery, dealers said.

The local currency was trading at 1,211.6 won to the greenback as of 9:34 a.m.,
up 6.9 won from Tuesday's close and marking the strongest level this year.
The won's ascent came as offshore investors continued to buy Seoul stocks,
lending support to the Korean currency. Foreign investors snapped up a net 137
billion won (US$113.1 million) worth of Seoul shares on the main bourse.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 1.1 percent to
1,671.53 as of 9:34 a.m., mirroring overnight gains in U.S. markets.
U.S. Federal Reserve Chairman Ben Bernanke said the economic recession in the
world's largest economy is very likely over, fueling optimism about a global
economic recovery.
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 30 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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