ID :
80264
Wed, 09/16/2009 - 23:43
Auther :
Shortlink :
https://www.oananews.org//node/80264
The shortlink copeid
Korean currency hits 11-month high on stock rallies
(ATTN: RECASTS headline, lead; UPDATES with more quotes and details from para 2)
By Kim Soo-yeon
SEOUL, Sept. 16 (Yonhap) -- The South Korean currency rose to an 11-month high
against the U.S. dollar on Wednesday as foreign investors' appetite for riskier
assets gained momentum on hopes for an economic recovery, dealers said.
The local currency closed at 1,211.3 won to the greenback, up 7.2 won or 0.59
percent from the previous session, the strongest level since Oct. 14, 2008.
The won, which climbed to 1,209.2 won at one point, also posted the highest close
this year.
"Factors like the globally weak dollar and stock rallies put upward pressure on
the Korean won," said Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
"The won seemed to manage to defend the 1,210-won level due to suspected
intervention."
The finance ministry said earlier in the day that foreign exchange authorities
are closely watching the market and will take appropriate actions if excessive
herd behavior occurs.
The won's ascent came as offshore investors sharply expanded their buying spree
of Seoul stocks, lending support to the local currency.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 1.81 percent to
1,683.33, mirroring overnight gains in U.S. markets. Foreign investors snapped up
a net 877.9 billion won (US$724.8 million) worth of Seoul shares on the main
bourse.
U.S. Federal Reserve Chairman Ben Bernanke said Tuesday that 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.
Analysts say the Korean won is widely expected to be under upward pressure as the
dollar is globally weak against major currencies and growing prospects for an
economic recovery revived risk appetite by foreign investors.
"The pace of the won's strength is likely to hinge on how long the greenback
shows its weakness and whether foreigners continue to buy Seoul stocks," Jeon
said.
"The won's ascent cannot help denting South Korea's exports, but it is a relief
to Korean products that the Japanese yen's rise has been steeper than that of the
Korean unit."
Jun Min-kyu, an economist at Korea Investment & Securities, said that the Korean
unit may gain ground to a 1,150-won range, but the pace of the gain is not likely
to be fast.
sooyeon@yna.co.kr
(END)
By Kim Soo-yeon
SEOUL, Sept. 16 (Yonhap) -- The South Korean currency rose to an 11-month high
against the U.S. dollar on Wednesday as foreign investors' appetite for riskier
assets gained momentum on hopes for an economic recovery, dealers said.
The local currency closed at 1,211.3 won to the greenback, up 7.2 won or 0.59
percent from the previous session, the strongest level since Oct. 14, 2008.
The won, which climbed to 1,209.2 won at one point, also posted the highest close
this year.
"Factors like the globally weak dollar and stock rallies put upward pressure on
the Korean won," said Jeon Seung-ji, a currency analyst at Samsung Futures Inc.
"The won seemed to manage to defend the 1,210-won level due to suspected
intervention."
The finance ministry said earlier in the day that foreign exchange authorities
are closely watching the market and will take appropriate actions if excessive
herd behavior occurs.
The won's ascent came as offshore investors sharply expanded their buying spree
of Seoul stocks, lending support to the local currency.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 1.81 percent to
1,683.33, mirroring overnight gains in U.S. markets. Foreign investors snapped up
a net 877.9 billion won (US$724.8 million) worth of Seoul shares on the main
bourse.
U.S. Federal Reserve Chairman Ben Bernanke said Tuesday that 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.
Analysts say the Korean won is widely expected to be under upward pressure as the
dollar is globally weak against major currencies and growing prospects for an
economic recovery revived risk appetite by foreign investors.
"The pace of the won's strength is likely to hinge on how long the greenback
shows its weakness and whether foreigners continue to buy Seoul stocks," Jeon
said.
"The won's ascent cannot help denting South Korea's exports, but it is a relief
to Korean products that the Japanese yen's rise has been steeper than that of the
Korean unit."
Jun Min-kyu, an economist at Korea Investment & Securities, said that the Korean
unit may gain ground to a 1,150-won range, but the pace of the gain is not likely
to be fast.
sooyeon@yna.co.kr
(END)
